ANZ urges against further curbs to foreign investment

ANZ is urging against more curbs on investment in the wake of concerns about the lease of assets to foreign firms.

The council has previously urged the government against putting up barriers to foreign ­investment

One of Australia’s biggest investors in Asia, ANZ, is urging the Turnbull government against further restrictions on investment in the wake of concerns about the lease of sensitive assets to foreign companies.

ANZ has told an influential Senate committee that Scott Morrison already had sufficiently wide powers to oversee foreign investment proposals and pointed to the appointment of a former top security official to the Foreign Investment Review Board.

“There is continuing community support for foreign investment and Australia’s stability and well-developed capabilities are generally attractive to investors,” the bank has told the committee.

“In ANZ’s view, the current legislative framework strikes a balance between realising the benefits of foreign investment and protecting the national ­interest.”

The Senate economics committee is looking at whether there should be changes to the rules governing foreign investments to ensure Australia’s national interest is given sufficient weight.

It is looking at the Northern Territory government’s controversial 99-year lease of the Darwin port. Concerns have been raised over the lease to Chinese firm Landbridge given the strategically important role of the port.

The inquiry is also canvassing the lease of the NSW power network to a 65 per cent foreign-owned consortium and the Treasurer’s blocking of the sale of the S Kidman & Co cattle properties on national interest grounds.

Mr Morrison cited security grounds as one of his reasons when the $350 million takeover of the Kidman cattle properties by foreign interests was rejected.

In its submission to the ­committee, ANZ acknowledges that it was not party to the ­Darwin port, TransGrid or Kidman matters, but backs the existing rules as ample.

The bank says the Foreign Acquisitions and Takeovers Act gives the Treasurer “broad” powers to block proposals or impose conditions. “ANZ believes that the powers currently granted to the Treasurer are sufficiently wide to enable review and oversight of asset and lease sales,” ANZ head of government and regulatory ­affairs Rob Lomdahl says in the submission. “ANZ also notes the recent appointment of Mr David Irvine to FIRB to increase national security expertise.”

Mr Irvine is former director-general of the domestic intelligence agency ASIO, and of its counterpart, ASIS.

The Australian understands that the Business Council of ­Australia will also make a ­submission to the inquiry, which is due to report next month.

The council has previously urged the government against putting up barriers to foreign ­investment.

The Australian Strategic Policy Institute is also expected to make a submission. The institute is expected to call for FIRB to have stronger capacity to independently assess the impact of foreign investment proposals on national security and for FIRB’s authority to be extended to cover state and territory owned assets.