Independent Senator Nick Xenophon says the potential purchase of five properties in the Western District of Victoria by a Middle East agricultural company highlights the importance of tightening the laws on foreign investment
It has been reported that Qatar's Hassad Foods is set to purchase 8500 hectares of farmland in a deal worth $35 million.
Currently, the Foreign Investment Review Board only assesses purchases that exceed $230 million.
Senator Xenophon has introduced a Private Member's Bill which will require all purchases of agricultural land more than five hectares to be scrutinised by the FIRB.
"I don't know why we have such an extraordinarily high threshold here in Australia," he says.
Senator Xenophon says foreign countries are investing in Australia because they understand the importance of food security.
"It's going to become the big issue of the 21st century (and) we have been less than smart in our approach to this."
Victorian Farmers Federation President Andrew Broad agrees that tightening the regulation of foreign investment is crucial.
But he says a five hectare threshold would be too onerous to govern.
Mr Broad says investments that exceed $20 million should be investigated.
"It doesn't have to be onerous, I don't think the Foreign Investment Review Board should stop every transaction, it's just a matter of providing some oversight," he says.
"We need to be aware this is what's happening around the world and the Australia Government is going to be 10 years behind the mark and it will be too late."
Mr Broad says Australia is in a good position to increase food production capacity to meet rising global demand.
"But we are selling both the soil and chance to profit off it," he says.
"Id' rather sell them heaps and heaps of milk, heaps and heaps of wool and heaps and heaps of grain, than sell them the farm once and not be able to capitalise into perpetuity."
"There are a lot of people in Federal Government at the moment whose ears are shut to agriculture."
Senator Xenophon says the Bill is due to voted on later this year.
Soucre: http://www.abc.net.au/local/audio/2011/06/08/3238857.htm?site=ballarat