The deputy prime minister, Barnaby Joyce, has said Australia has the right to reject sale of land to foreign bidders and shrugged off concerns investors would be deterred by the government’s decision to block the sale of Australia’s largest landholder.
On Friday the treasurer, Scott Morrison, blocked the sale of S Kidman & Co to a majority Chinese-owned consortium because it “may be contrary to the national interest”.
The sale of the company’s assets, which comprises 2.5% of Australia’s agricultural land or 1.3% of Australia’s land mass, was worth $370.7m.
The Chinese-owned would-be majority owner, Dakang Australia Holdings, may respond to the decision by Tuesday, allowing a chance to revise the bid.
On Monday, in an interview on Radio National, Joyce refused to be drawn on whether the government would reject a revised foreign bid for Australia’s largest agricultural landholder before it goes into caretaker mode before a 2 July double-dissolution election.
Joyce said the blocked sale sent the message Australia would determine investment decisions based on its national interests.
In a testy interview Joyce repeated formulations of “we have the right to say the word ‘no’” and framed interviewer Fran Kelly’s questions about the principle behind the decision as a contradiction of that right.
“It sounds like you want me to say yes,” he said.
When asked why the sale wasn’t in Australia’s national interest, Joyce said: “I think it’s because an incredibly large section of land, it’s 2.5% of our agricultural land, [or] 1% of Australia.
“Let’s not get carried away – we’re not blocking every sale.”
Joyce described Australia as “the most liberal nation on earth” when it came to foreign investment, because foreign buyers were not allowed to buy agricultural land in Japan, China and some US states.
Joyce denied the decision would discourage foreign investment.
“We have people lined up out the door, over the hill ... still wanting to buy land,” he said. “We have a large section of foreign investment in agricultural assets. If someone wants to buy up Western Australia, South Australia, Tasmania, would we let it happen?”
When Kelly responded “Of course not”, Joyce said: “You agree with me. There has to be a line in the sand, now we’re arguing where that line should be drawn.”
Asked about a fall in foreign investment from $40bn in 2014 to $30bn last year, Joyce said in the agricultural sector it had “gone through the roof” so blaming the fall on rejection of agricultural land sales was “looking in the wrong direction”.
Joyce refused to say whether the government would reject a revised bid before going into caretaker mode, saying it was a matter for the treasurer.
“Let’s try and stick to our knitting,” he said. “I’m agriculture and water resources, and we’re doing a splendid job in the Coalition in that area ... I’m only too happy to talk about how we’ve released the carp herpes virus and how we’re going to rid our waterways of carp.”
