Foreign investment crucial to Queensland's prosperity

Thursday 27 September | Categories: Economic Policy

Chamber of Commerce and Industry Queensland (CCIQ) has confirmed its strong support for foreign investment in Queensland in response to the Coalition’s policy discussion paper on Foreign Investment in Australian Agricultural Land and Agribusiness.

CCIQ has provided constructive input on several discussion points, including the composition of the Foreign Investment Review Board, the implementation of a threshold for foreign investments at 15 per cent and the establishment of a national register of foreign investment in agriculture and agribusiness.

CCIQ took this opportunity to restate its unequivocal support for foreign investment in Queensland and nationally.

Foreign investment is crucial to Queensland’s future growth and prosperity.

Any attempts to significantly alter the current system could stall domestic and foreign investment and in turn economic activity, in the State’s key industries of tourism, agriculture, resources and construction.

CCIQ General Manager – Advocacy, Nick Behrens said, “Foreign investment is incredibly important to the Queensland business community.“

“It provides many small and medium Queensland businesses with opportunities that otherwise would not be available.

“Australia is well-positioned to take advantage of the rising middle class, not only in China but across the region and beyond.

“We need to focus on strengthening our ties and sending a clear message that Queensland is open for business and offers a competitive environment for foreign investors.”

CCIQ’s submission to the Coalition’s discussion paper outlines some of the challenges of foreign investment and the benefits for the business community and wider Queensland economy.

Recommendations include:

• Maintaining the Foreign Investment Review Board and ministerial discretion under the Foreign Acquisitions and Takeover Act 1975;
• Establishment of a national register of foreign interest in agricultural land and agribusiness (in principle) to enable greater access to data about foreign investment in the sector;
• Exercising caution in any move to lower the threshold for business acquisitions from $244 million;
• Ensuring local businesses are empowered to take advantage of the potential provided by foreign investment, through procurement and indirect opportunities.

Whilst there is some room for improvement, the current framework is serving the country well, striking the right balance between Australia’s national interests and sending the message to foreign investors that Australia is open for business.

A copy of CCIQ’s submission can be found here.