Foreign Investment - National Interest
According to AFR article Arrium Three Way Bids, there are three “serious bidders” left in the race to bid for the nationally significant steel, mining and port assets of the country. The article further emphasised there are many “complex conditions” attached to these offers.
Without knowing the exact details of what conditions are being sought by the bidders, we can only assume things like increased government financial and policy support and guarantee, tax incentive, perhaps even with planned redundancy, reduced employee negotiation power, easier access to offshore workforce etc. could well be on the table…
Seriously, are we in such a dire situation and need to sell ourselves short by inviting foreign companies to takeover our assets with national significance?
Foreign Investment Review Board
It is comforting to know Australia does have an independent body as known as Foreign Investment Review Board (FIRB), it is empowered to assess and review all significant acquisition of Australian assets by foreign entities.
As extracted from Foreign Investment Reforms Factsheet: Foreign investment in Australia https://firb.gov.au/files/2015/09/FIRB_fact_sheet_Foreign_investment_overview.pdf
"Australia is open for business. However, the benefits of foreign investment are not always immediately recognisable and some investment proposals can be detrimental to Australia’s interests. The Government reviews foreign investment proposals on a case-by-case basis to ensure that they are not contrary to the national interest.
In general the national interest considerations can include: national security, competition, other Australian Government policies (including tax), impact on the economy and the community, and the investor’s character."
Debt Refinance Proposal
ASU has proposed a Debt Refinance Proposal to the major banks and the administrators Korda Mantha as an effective and most sensible alternative option than selling off and liquidating the company to save jobs and to keep the nationally important assets in Australian hands.
Save jobs! Save the steel industry!
Keep the nationally significant assets in Australian hands!
Return the company back to its shareholders!
