Where are We Going with Australia...
Normally friends, my writing is focused on articles to that explain material connected to our company's mapping research, or a product we may have published or be looking at. Today I wish to pen some thoughts that are not company related; that have nothing to do with our products; but that have caused me some measure of personal concern about the possible direction the good ship Australia is heading.
For many years now Australian companies have been investing in, and partnering with many international groups in the development of a wide range of commercial projects, such as mining projects and oil and gas ventures, and we have seen much success and forward growth from this....
But my concern is that recently we seem to also be keen to sell off to overseas interests the control of some of our key strategic infrastructure assets as well. These include such groups as major gas retailers, port facilities, power distribution networks and most recently an attempt to buy one of Australia's most strategic gas fields. Assets that most countries would want to keep control of for their own security and well being. Let me give you some examples...
Over the past few years, Chinese and other Asian interests have taken large to controlling interests in the Victorian Power distribution networks, with companies such as Citipower, Powercor, Jemena, United Energy SP Ausnet and Energy Australia all being controlled by these overseas national groups. In the ACT, the distribution network company is wholly owned by Chinese interests. In WA, the gas retailer Alinta Gas has just be sold to a Chinese group CTFE, without the opportunity for local interests to be considered.
In 2016, the NT government handed a 99 year lease ( for most of us that means permanent) to a Chinese company, giving it effective control of the port. An interesting move in light of the fact the US is moving to stage a large Marine Amphibious group through the port each year. In the year the Victorian government sold a long lease on it's port to the Londsdale Consortium, which also included a Chinese group having 20% of that contract.
Better outcomes for us include the recent sale of the Kidman cattle empire to a group headed by our own Gina Rhinehart, but also including Chinese interests who own 32% of this group. The Kidman group of properties comprise 1.3 % of Australia's whole land mass, and 2.5% of our entire agricultural land.
In August 2016, after being blocked from selling it's entire power distribution network to a Chinese state owned company, the NSW government then did sell out to a group largely made up of Australian investors. Why did we look overseas in the first place ??
The most recent event - one that's still in play, is the potential takeover of a smaller Australian oil and gas group, that have discovered what could be the most strategic gas deposit in Australia for 40 years. Australian Worldwide Exploration (AWE) has discovered some serious gas fields in the Mid-west of WA. Enough to support our domestic gas needs in this state for many years. Within a short time, a Chinese group rolled up to make a complete buy-out bid for this company, and the FIRB did not object to this move at all ??!! In the midst of this move, another Australian company called Mineral Resources Limited emerged, and made a competing bid for AWE. While not fully determined yet, it appears the MRL bid will be successful, and this gas deposit will remain in Australian hands.
So my question of the day - so to speak - is why are we selling off control of strategic assets to overseas interests, when there is plenty of funding in Australia to handle these issues. Apart from other avenues, Australia has one of the largest Superannuation funds in the world, currently standing at over $2.1 TRILLION. If the Federal government mandated a small amount of it (say 2%) to be put into our own country's stuff, that would give us $40 Billion to invest here in our own strategically important things.
Your comments on this or any other article are always welcome...Thank you.