Bids from foreign investors for Australian farmland should have a strike against them when considered by the Foreign Investment Review Board (FIRB) if there is a comparable Australian bid, says Senator Nick Xenophon.
On Thursday The Nick Xenophon Team and crossbench MP Bob Katter sought to turn the latest bids for the S.Kidman and Company properties into a political issue over Australian ownership by bringing Sterling Buntine - part of the all-Australian syndicate, BBHO, to Canberra.
The group includes the Buntine, Oldfield and Harris families, as well as BRW Rich Listers Tom and Pat Brinkworth, who have launched a high counter bid to that of Gina Rinehart and Chinese joint-venture partner Shanghai CRED for the property.
Mr Buntine said he felt that there was some bias in the sales process because he was told that inspections of the properties could not be made unless an unconditional bid was lodged and yet the Hancock and Shanghai Cred bid was conditional and they had access to the properties.
"We intend to fight for these places," Mr Buntine said.
Asked by reporters if Ms Rinehart had an advantage because of her relationship to politicians such as Barnaby Joyce, Mr Buntine said: "That may or may not be the case," but it was not his focus.
Senator Xenophon said the rules were stacked against local companies and syndicates such as BBHO and he wanted the Foreign Investment Review Board (FIRB) to help Australian companies by advising the Treasurer against foreign bids when there is a comparative Australian bid.
"There ought to be a positive obligation in the legislation that says if there is a commercially equivalent comparable Australian-based bid, that must be one of the factors to be positively considered by the FIRB in making a recommendation to the Treasurer, because at the moment it doesn't have to be considered and that to me is very problematic," Mr Xenophon said.
Asked if foreign bids should have "a strike" against them included in the legislation he said: "Yes in terms of weighing up the factors."
He said the foreign investment framework aimed at funding projects which did not attack local funding, and the FIRB and Treasurer Scott Morrison - who makes the final decision on approvals - should consider the economic and tax gains from a local bid.
The families own 400,000 head of cattle between them already which is more than twice what Kidman and Co have.
In a public statement the syndicate noted there were a number of options and legal processes to consider given Kidman’s public company status “should we elect to proceed” with the bid.
Mr Buntine said he was not in Canberra to gain any favours, but just wanted a level playing field.
"We are not here for any favours ... we are not here to have a crack at foreign investment we are here to say that we are as good as anyone on this deal," he said.
“We are fair dinkum about this.
“It is our intention to take a great Australian company and legacy - grow it into a global brand that all Australians would be proud of.
“We are very passionate about these properties.
“If you won’t fight, if you won’t bleed for the land, you never wanted it bad enough.”