The decision to block the sale of one of Australia’s largest farms to a foreign consortium doesn’t mean Australia is closed for business, the deputy prime minister, Barnaby Joyce, has argued.
The treasurer, Scott Morrison, has blocked the sale of Australia’s largest landholder S Kidman & Co to a majority Chinese-owned consortium because it “may be contrary to the national interest”.
Joyce, the Nationals leader, defended the decision in response to warnings from the National Farmers Federation and Labor that it may send a signal that Australia is no longer open to foreign investment, especially from Chinese investors.
“If the idea is that you say no once then the whole world is going to collapse, then I suppose it is going to collapse ... there are vastly stronger restrictions in basically every nation on earth,” he told ABC radio.
Labor has criticised the knock-back of the S Kidman and Co deal.
The shadow treasurer, Chris Bowen, said it would create uncertainty and confusion among foreign investors.
The Labor frontbencher Richard Marles joined the attack, calling the decision a knee-jerk reaction.
“It is totally clear the de facto treasurer now is Barnaby Joyce,” Marles said.
The sale of the S Kidman & Co’s assets, which comprise 2.5% of Australia’s agricultural land or 1.3% of Australia’s land mass, was worth $370.7m.
“Given the size and significance of the Kidman portfolio I am concerned that the acquisition of an 80% interest in S Kidman & Co Limited by Dakang Australia Holdings Pty Ltd (Dakang) may be contrary to the national interest,” Morrison had said.
The applicants have until Tuesday 3 May to respond.
– Australian Associated Press contributed to this story
