PRIME MINISTER
FOR PRSS 5 DECEMBER 1978
FOREIGN INVESTMENT POLICY
The Prime Minister, the Rt. Hon. J. Y1. Fraser, M. P.,
announced today that he intended approaching the State Premiers
with a view to developing a closer working relationship between
the Foreign Investment Review Board and State Government
authorities.
Mr Fraser said that foreign investment has implications for
State interests as well as national interests and the Government
had always recognised the value of close liaison with the States
on foreign investment matters. In this regard, ' the Government
had made it a function of the Foreign Investment Review Board
to establish appropriate liaison with State Government authorities.
Mr Fraser said that the Board had developed the practice of consulting
relevent State authorities on foreign investment proposals
that had significance for the States in order that State views
could be taken fully into account. The cooperation of the States
in this regard had been mutually beneficial and the Government
considered that there would be value in strengthening the existing
relationships. In June last, Mr Fraser said, the Treasurer announced some
changes to the foreign investment guidelines following a review
of their operation over the preceding two years. It was decided
in that review that the essential features of the policy announced
in April 1976 should be maintained. The policy is designed to
provide a favourable climate for foreign investment on terms
consistent with Australia's national interests and the provision
of maximum opportunities for Australians to participate in major
projects. At the same time, the Government decided to relax a
number of administrative procedures and special facilities were
introduced to encourage predominantly foreign owned companies
in Australia to move towards majority Australian ownership.
Following the announcement of these changes, the Treasurer
arranged for the Executive member of the Foreign Investment
Review Board to visit the States to explain and discuss the
policy with State Government officials. The subject was also
raised at the Premiers' Conference in June.
2.
In the course of the review of foreign investment policy,
the Prime Minister said the Government noted that some
foreign investors had expressed some concern about the
possibility of State Government requirements on foreign
ownership and control running counter to the Commonwealth
guidelines. The view had been put forward that this could
create uncertainties that might discourage foreign investment
in Australia. The Government believes it would be in the
interests of the Commonwealth and the States to make it clear
to foreign investors that there is a common approach within the
general framework provided by the Commonwealth's foreign
investment guidelines'. The Prime Minister said he would
be suggesting to the State Premiers that there should be
further discussions between the Foreign Investment Review
Board and State officials on this matter.