Ex-spymaster to head up Foreign Investment Review Board

Former ASIO and ASIS chief David Irvine’s appointment signals a new national security focus on foreign investment.

Ex-ASIO and ASIS boss David Irvine takes up a new role as head of the Foreign Investment Review Board, with a focus on national security in weighing up foreign bids for key infrastructure. Picture: Kym Smith

The former director-general of domestic intelligence agency ASIO, David Irvine, has been ­appointed as the new chairman of the Foreign Investment Review Board in a signal from the Turnbull government that national sec­urity is a key priority in the ­assessment of foreign bids for Australia’s critical infrastructure.

The Weekend Australian has confirmed that Mr Irvine has agreed to take on the role following a request by Scott Morrison, in a move partly designed to ensure that controversial decisions including the sale of the Port of Darwin and the 11th-hour blocking of the Ausgrid sale on security grounds are not repeated.

Mr Irvine’s appointment follows Malcolm Turnbull’s request for a national security audit of the country’s critical infrastructure and a list of red-flagged assets that would automatically trigger a FIRB review.

It signals a move by the Treasurer to ramp up the FIRB’s capabilities to deal with often complex security issues and politically sensitive transactions involving critical infrastructure. The outgoing chairman, Brian Wilson, hailed from the investment banking sector including a past role on the ­Reserve Bank board.

Mr Irvine told The Weekend Australian last night that Australia did not discriminate against particular foreign investments.

“Australia welcomes foreign investment, foreign investment in the national interest … and I don’t see that changing,” he said.

Mr Morrison confirmed the appointment last night, saying: “David joined the board last year and provides a capacity to deal with these more complex trans­actions involving critical ­infrastructure.

“His lengthy experience in dealing with these sensitive issues equips him well to assist the government as we seek to attract ­foreign investment but ensure it serves our national interests.”

Last year, Mr Morrison was forced to intervene at the 11th hour to block the sale of NSW ­energy network Ausgrid to a Chinese company following security concerns that had not been previously identified.

Mr Irvine, one of the country’s most experienced and respected public servants who has served as the director-general of both ASIO and ASIS, was appointed to the board in 2015 by Mr Morrison­following the highly criticised Port of Darwin sale to Chinese interests.

The $500 million sales had controversially raised no objections from Defence despite concerns from the US military and its proximity to US marine forces based in Darwin.

Mr Irvine’s experience as a former ambassador to China was also cited as a factor in his appointment considering the elevated ­interest in Australian assets from Chinese state-owned enterprises and companies with strong links to the Chinese Communist Party.

The Attorney-General George Brandis announced in January that a Critical Infrastructure ­Centre had been established to begin assessments of assets in the power, ports and water sectors, ­including their cyber operations.

In a statement released last night, Mr Morrison said Mr Irvine would begin a five-year term on April 16, 2017. “The Turnbull government has taken consistent and determined action when it comes to ensuring foreign investment is not contrary to the national interest, whilst never underestimating its importance to our national economy,” he said.

“Mr Irvine is joined on the board by Messrs Michael D’Ascenzo AO, David Peever (former Australian head of Rio Tinto), Patrick Secker and Ms Alice Williams.

“I would like to take this opportunity to thank Mr Wilson for the valuable contribution he has made to the deliberations of the board during his tenures both as the chair and as a member.”