Former foreign minister Bob Carr has accused federal Treasurer Scott Morrison of bowing to "the witch's Sabbath stirred up in the recent federal election" with his preliminary decision to block the sale of a key NSW electricity asset to Chinese interests.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Mr Carr accused Mr Morrison of "conceding to economic populism in the new parliament" by announcing that Chinese government-owned State Grid and privately-owned Hong Kong-based Cheung Kong Infrastructure would not be allowed to bid for control of electricity distributor Ausgrid.
Cross bench senators Pauline Hanson and Nick Xenophon had expressed concern about a successful State Grid bid, as had independent MP Bob Katter.
Mr Carr noted that just last year the Foreign Investment Review Board had not blocked an unsuccessful bid by State Grid for high voltage distributor Transgrid "that holds NSW electricity distribution and telecommunications assets."
"Ausgrid's telecommunication assets are meagre in comparison," he said. "There was clearly a different political climate when they ticked off the State Grid bid for Transgrid."
"If State Grid's offer for a NSW distribution asset raises a security risk why weren't the same risks apparent when State Grid was allowed to purchase the distribution assets of South Australia and Victoria?" he asked.
Mr Carr said a Lowy poll showed the Australians nominating China as their best friend in Asia over the Japanese, while a poll by the US Studies Centre at the University of Sydney showed more Australians see China's role in Asia in a positive light than America's.
He noted Mr Morrison's statement referred "not to FIRB advice but to the review process."
"Does this mean that his decision is not based on the analysis of the FIRB but instead has been arrived at in his own office?"
"It's a huge concession – the first major policy sacrifice – to the witch's Sabbath stirred up in the recent federal election," Mr Carr said.
"There's only one conclusion. The Treasurer is conceding to economic populism in the new parliament and dealing a blow to the NSW budget, jobs and infrastructure."
State Grid and CKI were the only two bidders for 50.4 per cent of Ausgrid, which was expected to fetch more than $10 billion for the NSW government to be used for infrastructure.
But on Thursday Mr Morrison said that, after carefully considering the two bids: "The foreign investment proposals put to me for this transaction are contrary to the national interest, in accordance with the required provision on the grounds of national security."
"I have invited the bidders to make submissions to me by 18 August 2016 in order to make a final decision after that time."
NSW Treasurer Gladys Berejiklian has said if Mr Morrison's decision stands the government still expects to complete the Ausgrid transaction and bank the proceeds before the 2017 budget.
