Leading agent calls for change
A PERTH real estate agent has called for change to the rules surrounding the sale of agricultural land to foreign interests.
A NOTED Perth real estate agency head has launched a vocal attack on the sale of vast tracts of agricultural land to foreign interests.
Principal of Mark Hay Property Group Mark Hay is urging tougher controls on the freehold sale of WA farm land which he says could not happen anywhere else in the world.
Mr Hay caused a reaction among recipients he says, that was unprecedented in 25 years.
"The current rules of ownership allow foreigners to purchase, on current values, millions and millions of acres of our pastoral and farming lands with no supervision or restrictions,'' Mr Hay said.
"Whilst everyone recognises the world is certainly a global market and Australia cannot stand alone, with just over 10 per cent of the whole of Australia's farm land already in foreign ownership, this trend will surely increase if we don't amend our laws quickly.''
Currently the Foreign Investment Review Board does not scrutinise or place any restrictions on the sale of properties under $248 million, provided the property is farm or rural land for primary production. WA Farmers Federation president Dale Park said the federation believed the threshold for sales to be scrutinised by the FIRB needed to be much lower.
"The average value of WA agricultural properties is between $1 million and $10 million,'' Mr Park said.
"So you could sell off the majority of the WA agricultural sector and not trigger the interest of the FIRB.''
Mr Park said the federation had consistently stated they were not opposed to foreign investment but simply wanted to know who owned WA farm land.
He said a Federal Government register of foreign-owned farm land, which was announced last year but not yet implemented, and the hoped-for lowering of the FIRB threshold would provide sufficient information and scrutiny for the WA agricultural industry.
WA Labor leader Mark McGowan announced he would consider establishing a parliamentary committee to monitor and assess foreign ownership of WA farmland if elected.
Premier Colin Barnett said the Liberal party did not believe a parliamentary committee was currently necessary.
``We do not believe foreign ownership of WA farmland is at a stage where it threatens WA's future food security or defence interests,'' Mr Barnett said.
However, Mr Barnett said the party supported the establishment of a State register of foreign ownership, similar to that promised by the Federal Government.
Foreign ownership of farmland is currently a hot topic in South Australia where Qatari company Hassad Australia has started buying land in prime cropping and grazing areas.
The issue of foreign land ownership also surfaced locally last year when Chinese company Shanghai Zhongfu was awarded a lease to grow sugar on 15,000ha of Ord River land, beating two Australian bidders.
A sale of prime Lake Varley farmland in the Esperance region to Chinese interests in November last year also caused some controversy.
Agent Mr Hay, who is also a farmer and a father of five, said he felt the current measures and attitudes only took a short-term view.
"We need to think long-term for what's in the best interests of the state and the country,'' he said.