Frank Lowy speech: Chaos, Trump and China ‘risk our values’

Political instability, China’s rise and Donald Trump risk ­undermining our democratic values, Frank Lowy says.

Frank Lowy and Julie Bishop. Picture: Jane Dempster

“Unacceptable’’ political instability, the rise of China and threats to our alliance with the US caused by having a US President who is a “friend of authoritarians” risk ­undermining Australia’s democratic values, business legend Frank Lowy says.

In an address last night to the Lowy Institute in Sydney, the foreign policy think tank he founded 15 years ago, Sir Frank warned that Australia too often sold “itself short” on the international stage.

He urged the federal government to stand its ground against China’s advance in Asia and embrace its historic alliance with the US, despite the challenges of working with Donald Trump’s ­administration.

Sir Frank, who survived the Holocaust and fought in the Israeli War of Independence before ­moving to Australia and building a multi-billion-dollar shopping-centre empire, said he had long ­admired Australia’s parliamentary system. “But having five prime ministers in five years is not ­acceptable,” he said in what is expected to be one of his final major speeches in his celebrated career.

“Democracy needs to be nurtured and treated with care.’’

At the end of May, Sir Frank announced his retirement from business after his Westfield Group accepted a $33 billion takeover bid from Europe’s biggest commercial property company, French group Unibail-Rodamco.

“We need to give the prime minister of the day a chance,” he said. “If he or she cannot win an election, so be it. But no prime minister can push through the reforms we need if they cannot even finish a term in office.”

Sir Frank, who has largely limited his public comments in recent years to addresses to his Westfield shareholders at annual general meetings, said he was concerned by the protectionist policies of the Trump administration.

“I regret that Mr Trump does not see the great advantages that flow to America from its alliances and the global trading system,” he said. “Personally, given my life experiences, I feel more comfortable when the president of the US is an advocate of democracy, not a friend of authoritarians.

“But whilst he is the President, Donald Trump is only one man — he is not the country. Our alliance is not with the Trump administration, it is with the US.

“Australia would be mad to walk away from the alliance. And where exactly would we go? We have to be pragmatic.”

Frank Lowy speaking at the Lowy Institute dinner at Sydney Town Hall on Thursday night. Picture: Jane Dempster/The Australian.

The Trump administration has been pressuring China to reduce its trade surplus with the US and over the past 10 weeks has imposed duties on more than $US50 billion of Chinese exports, prompting a retaliatory response from Beijing. In such a context, Sir Frank said, it was important Australia remained on “the front foot rather than the back foot”.

He said while Canberra should work hard to develop a co-­operative relationship with ­Beijing, it was important to be forthright where there were dis­agreements.

“I know some people in the Australian debate have a different opinion,” he said. “They say China is so important we must go along with its view of how the region will work in the future. In fact some even suggest we should encourage the US to do less in Asia.

“I am not a China expert, but I have had some experience in negoti­ations. And my experience tells me that if you don’t look after your own interests, the person across the table certainly won’t.

“Our interests lie in having a balanced region — with the US ­ actively engaged — in which Australia and other countries are able to make their own independent decisions. And we should be clear with Beijing about that.”

He called for Australia to be strong on what he called the three Is: immigration, innovation and infrastructure.

As one of Australia’s most successful immigrants, Sir Frank has long been an advocate for an ambitious immigration program, but he said he was alarmed by recent Lowy Institute polling showing 54 per cent of Australians believed the number of migrants coming to Australia was too high.

The Lowy Institute dinner in Sydney on Wednesday night. Picture: Jane Dempster

“There is a rising crescendo of opinion from columnists and politicians saying we should reduce our immigration intake. And in the past year, our immigration intake has declined. We have gone from migration targets to ­migration caps — I think we are moving in the wrong direction.”

He said it was right that Australia took the appropriate measures to prevent illegal immigration.

He called for governments and commentators to move away from their annual obsession with the federal budget each year and view the economy through a different lens. “Economies do not run from year to year — we should shift the focus from managing the budget to managing the national economy,” he said.

Sir Frank also stressed the current infrastructure boom must not be a one-off. “It shouldn’t even be called a boom. It needs to become our new baseline. We do not want to fall behind,’’ he said.

Read the full speech