Fonterra to appeal Aussie court ruling
Fonterra says its ongoing legal battle with Australian processor Bega Cheese won’t change its divestment plans.
Now the Federal Government says it will lower the screening threshold from $252 million to $15 million from March 1. It will apply to the cumulative value of farm land owned by a foreign investor, including any purposed purchase.
And a foreign ownership register of farm land will strengthen reporting requirements and more clearly disclose foreign investment in farming.
National Farmers’ Federation (NFF) president Brent Finlay describes the register as “a welcome step in progressing policy agenda, delivering on a measure the NFF has long called for”.
“Foreign investment in Australian agriculture is welcome; it is essential for our continued growth and future prosperity. We are open for business.
“However, proper scrutiny of investment proposals and a transparent register form the necessary architecture for successful and sustained investment, and ensure that investment is in Australia’s best interest.”
The lower screening threshold will require that any foreign deal on farm land of $15 million or more must have Foreign Investment Review Board approval.
“The Government must ensure the Australian Taxation Office is properly resourced to deliver the long-promised register.”
Work will begin in July to collect information, and the public must be told when this information will be accessible, Finlay says.
“There are still some key issues to iron out, such as foreign investment in infrastructure, agricultural supply chains and water. These are key components of a successful model and must be addressed. We want foreign investment that serves Australian interests and we commend the government for taking this step.”
Federal Agriculture Minister Barnaby Joyce says from July 1 the Australian Tax Office (ATO) will collect information on all new foreign investment in farm land regardless of value.
