Crossbench Senators rush to oppose the foreign sale of foreign-owned VDL

UPDATE: Adds video of the new bid to buy Australia’s largest dairy farm, Van Diemen’s Land Company.

Van Diemen's Land Company (VDL), (NOT Van Dieman's as published) historic property Woolnorth, is the biggest dairy farm in Australia, the biggest supplier to the Fonterra milk company and the biggest supplier of milk in Australia, cows in the rotary dairy

THE bid to buy Australia’s largest dairy farm, Van Diemen’s Land Company (VDL), has just got a whole lot more complicated with a third entrant arriving in the race to buy it.

One of Australia’s pioneering businesswomen and philanthropists, Jan Cameron, has stepped forward in a rival bid, separate to majority Australian-owned consortium TasFoods Ltd and Chinese billionaire Lu Xianfeng.

VDL started in 1842 in Tasmania’s far North-West and has never been Australian owned.

It is owned by New Plymouth District Council in New Zealand.

“We have once in a lifetime opportunity to bring the magnificent Van Diemen’s Land property into Australian ownership for the first time,” Ms Cameron said.

“I am announcing my bid to underwrite the purchase of VDL property on commercially similar terms to the bid from the Chinese-owned Moon Lake Investments.

“This is an amazing opportunity using Australian labour and innovation to create a flagship dairy using world’s best practice.

“I have instructed KPMG’s mergers and acquisitions team in Sydney to lodge a formal expression of interest to rival parties by Friday of this week.”

Independent Member for Denison, Andrew Wilkie, left, and business woman Jan Cameron at a press conference on the sale of VDL Co. at Parliament House lawns in Hobart. Picture: SAM ROSEWARNE

Senators John Madigan, left, and Nick Xenophon at a press conference on the sale of VDL Co. at Parliament House lawns in Hobart. Picture: SAM ROSEWARNE

Independent Member for Denison, Andrew Wilkie, left, and Senator Nick Xenophon giving a press conference on the sale of VDL Co. at Parliament House lawns in Hobart. Picture: SAM ROSEWARNE

Business woman Jan Cameron, left, Independent Member for Denison, Andrew Wilkie and Senator Nick Xenophon giving a press conference on the sale of VDL Co. at Parliament House lawns in Hobart. Picture: SAM ROSEWARNE

Independent Member for Denison, Andrew Wilkie, left, and Senator Nick Xenophon giving a press conference on the sale of VDL Co. at Parliament House lawns in Hobart. Picture: SAM ROSEWARNE

Independent Senator for South Australia Nick Xenophon is campaigning against the proposed sale to Moon Lake Investments.

He has been joined by Tasmanian Independent MP Andrew Wilkie, Tasmanian Senator Jacqui Lambie and Victorian Independent Senator John Madigan in opposing foreign ownership of the dairy.

More on VDL: #auspol #politas pic.twitter.com/5MVCG7xXKM

— Jacqui Lambie (@JacquiLambie) January 13, 2016

Mr Wilkie said: “It’s not good enough for the Government to wash its hands of this matter and leave it up to the Foreign Investment Review Board.”

“Instead it should intervene immediately, stop the current proposed sale and ensure any actual sale is to an Australian entity,” he said.

Senator Xenophon said: “The Treasurer’s powers to approve or block a bid under the Foreign Acquisitions and Takeovers Act should be broad enough to involve a thorough scrutiny of the overseas bid (for VDL) and to contrast it with the benefits of a local consortium taking over the dairy,” he said.

He said he was drafting amendments to the Act to require the Treasurer to take into account the social and economic benefits of a local bid.

Senator Madigan said he is not opposed to the principal of foreign investment, but it did have to be managed.

He said it raises potential loss of Australian jobs and “...even potential loss of Australian food security”

Tasmanian Greens Senator Peter Whish-Wilson said he would refer the VDL sale to the current Senate Economics References Committee inquiry into the “Foreign Investment Review Framework,” and seek submissions and details from a range of stakeholders around potential concerns.

But at the same time Senator Whish-Wilson took time to comment on Senator Xenophon’s involvement in the VDL sale.

“It is no secret we are now in an election year, and Senator Xenophon is launching his new political party in Tasmania,” he said.

“It would be a shame for Tasmania if populist politicking got in the way of good policy and process.”

The government should reject the sale of #VDL dairy to a Chinese company & consider a local bid #savethefarm #auspol pic.twitter.com/y8rhO5weTa

— Nick Xenophon (@Nick_Xenophon) January 13, 2016

Independent Tasmanian Senator Jacqui Lambie though supported her fellow crossbench Senators calling on Treasurer Scott Morrison to use his legislative powers and immediately stop, in the national interest, the sale to foreign investors of VDL Company.

“Regardless of what the recommendations of a flawed Foreign Investment Review Board process are, which I’ve spoken about in parliament — it’s clear to ordinary Tasmanians that the sale of Australia’s biggest dairy company to Chinese investors is not in the state or national interest,” Senator Lambie said.

The operation includes 25 dairy farms, 13 at the historic Woolnorth property and another 12 around Circular Head, milking about 19,000 cows.

The other bidder TasFoods, which had its $250 million bid rejected, is seeking a hearing Court of Appeal of the Supreme Court of Victoria with a trial date planned for February 21.