The Chinese company seeking to purchase Tasmanian dairy – the Van Dieman’s Land Company (VDL) - has defended its bid, in the face of mounting Australian political and business opposition.
Moon Lake Investments owner Lu Xianfeng expressed his continued interest in buying VDL, Australia’s biggest dairy. He said he had received strong support from key political, community and business stakeholders.
“Let’s not forget that this is what we could term a ‘foreign to foreign’ acquisition,” Mr Lu said.
“The VDL assets have never been owned by an Australian entity.
“It therefore seems logical that the seller would accept the strongest offer with the best terms, from a buyer with the sufficient resources to enhance and improve the business for the ultimate benefit of all stakeholders.”
Mr Lu said when the $280 million sale was completed, Moon Lake would welcome the participation of up to 50% by Australasian investors.
“Australia has a long history of foreign investment across many industries. I am therefore optimistic of a positive outcome for the Foreign Investment Review Board (FIRB) approval process which we are hoping may be finalised by the end of January.”
Tasmanian businesswoman Jan Cameron – the founder of Kathmandu Outdoor - has announced plans to underwrite a rival bid for VDL, which has provisionally been sold Chinese businessman Lu Xianfeng's company Moon Lake Investments.
Tasmanian independent Denison MP Andrew Wilkie said pressure was building on the Federal Government, over the sale of VDL.
Independent cross benchers, Nick Xenophon (SA), John Madigan (Vic), Jacquie Lambie (Tas) and Glenn Lazarus (Qld) have joined Mr Wilkie, in opposing the sale.
Mr Wilkie said it was scandalous the Federal Government had agreed to the sale.
He said the 30,000 cow farm, on Tasmania’s north-west coast, covered an area of 20,000 hectares, over 25 farms.
Mr Wilkie said while the matter would not be decided by Parliament, the support of the cross benchers should ring alarm bells for the government.
“I do hold out hope that political pressure is building, it won’t be lost on the government, that half the Senate cross bench don’t like it,” Mr Wilkie said.
“If the government is tuned into public sentiment, they would need to pay increasing attention to this.”
Mr Wilkie said the FIRB should reject the sale, on the same grounds as the Kidman property sale was turned down.
“I would argue VDL is in the same league as Kidman, and for some of the same reasons – it’s such a big asset and genuinely of strategic importance to the country.
“That VDL is owned currently by New Zealanders and that it is a Chinese investor seeking to purchase it are entirely irrelevant,” he said.
“The fact is this is a commercial asset of strategic proportions and it would be irresponsible in the extreme for the Government to miss this opportunity to bring VDL into Australian ownership.”
And Senator Xenophon has called for foreign takeover laws to be changed, to consider credible alternative local bids before a foreign takeover can be approved.
Senator Xenophon was critical of the current process involving foreign takeovers. “The lack of transparency in the current process is a shocker,” he said.
Senator Xenophon said he would be working with his crossbench colleagues to move urgent amendments to the Foreign Acquisitions and Takeovers Act, to ensure the FIRB and the Treasurer must take into account any local alternative bids.
“It would be a monumental act of folly to approve this bid when there is an Australian-based bid to consider,” Senator Xenophon said.
“Whilst the alternative bid is focused on jobs and economic opportunity for Tasmania, the icing on the cake has to be its environmental and indigenous credentials as well,” he said.
The Greens have also referred the proposed sale to a Senate committee on foreign investment.
Tasmanian Greens Senator Peter Whish-Wilson said the committee would seek submissions and details from a range of stakeholders around potential concerns.
Mr Lu said increases in productivity at VDL would come from investment in nine new dairy farms, on existing pastures, not currently in use.
Herd and pasture improvements, as well as better feed utilisation, would also be used to increase milk volume.
“Clearing of about 1800 ha of land approved under the Statutory Vegetation Management Agreement with the State Government is a low priority for consideration at the present time,” Mr Lu said.
The company had also made a commitment to working with the Tasmanian government, the relevant federal and state agencies and the Federal Environment minister on a range of farming, Aboriginal cultural heritage and land management conservation issues.
