Foreign investment debate blocking Chinese tourist returns

Senator Colbeck is a former Parliamentary Secretary for Agriculture but was elevated to Tourism and International Education Minister and the Minister Assisting the Minister for Trade and Investment, when Malcolm Turnbull became PM last September.

He will speak at the ABARES conference in Canberra today on several major themes including the importance of foreign capital to enhance local projects like developing northern Australia.

He told Fairfax Media the way foreign investment was being framed in the media meant China was being used as a political football, to heighten scare campaigns.

But the latest statistics contradicted that characterisation with foreign direct investment in Australia including agriculture totalling $688 billion with the US share being $163.4b, the UK $87.4b and Japan 66.1b while China sits sixth on the list at $30b.

“A million Chinese tourists come to Australia on an annual basis but some of the things they would hear and see or hear in particular in our local media about Chinese investment wouldn’t necessarily send them home with a pleasant taste in their mouth,” he said.

“That could impact negatively on their propensity to come back again.

“But also having been in those markets and talked to people who are interested in investing, they ask me the question, ‘Are you serious about investment’?”

Senator Colbeck said foreign investment was vital because Australia doesn’t have the depth of capital needed, to facilitate necessary growth.

He said the worst example oof negative messaging about Chinese foreign investment had occurred around the recent sale of the large Tasmanian based Van Diemen's Land dairy company and the union led attacks on the China/Australia Free Trade Agreement.

“Some of the stuff that was written recently about Moon Lake Investments for example (DVL sale) was really quite absurd,” he said.

“So, investment in Australian agriculture by a New Zealand council is OK but investment in Australia by a Chinese private citizen who already has significant investments here is not.”

Senator Colbeck said the debate that underpinned the ChAFTA with fears raised about lack of local job protections was also “absurd”.

“It’s almost winding us back to the bad old days of the 60’s and 70’s,” he said.

“We saw a lot of this stuff roll through with Japanese investment in the tourism industry and with agriculture in the 70’s and 80’s.

“It’s as absurd now as it was then.

“In time, the Japanese became good partners and very important markets and the investment from the Japanese opened up new markets and supply chains into what was then a growing market but now is a very important one.”

Senator Colbeck said opposition leader Bill Shorten questioning this week whether an offer for VDL by high-profile Tasmanian businesswoman Jan Cameron had been disadvantaged or not was another example of the absurdity.

He said Ms Cameron didn’t actually make an offer for VDL which was approved by the Federal Treasurer last week for $280m million, with strict conditions including on taxation.

“There was no offer on the table from (Jan) Cameron for anybody to consider,” Senator Colbeck said

“What she was asking for was the Treasurer to knock back the other offer, so she could make one.

“That’s not what I’d call a process that’s conducive to engendering confidence in Australia as a place to invest.”

Chinese business man Lu Xianfeng is the sole owner of the Moon Lake Investments.

Federal Agriculture Minister Barnaby Joyce has not objected to the transaction saying VDL was already foreign owned and the government’s approval allowed Moon Lake to acquire VDL from the NZ based, New Plymouth District Council.

Senator Colbeck said growth in Australian farm exports had been “significant” in recent years with China now the nation’s major trading partner; facilitated by growth in demand and co-investment.