‘Invest super in local assets’ 

Treasurer Scott Morrison says he is “frustrated” that superannuation funds are not bidding for prized assets he has blocked from being sold to Chinese investors, arguing the Coalition’s assertive stance on foreign investment will have slashed their price tags.
The sale of Australia’s largest ­pastoral company, the sprawling S. Kidman & Co, is on hold, with foreign-based prospective buyers frustrated by uncertainties over how their bids should be structured to win approval amid the ­increasingly difficult investment climate.
The latest setback to the Kidman sale has stoked concerns about the government’s attitude to foreign ­investment — particularly large Chinese enterprises — after the Treasurer last week blocked the sale of NSW power distributor Ausgrid to one of two Chinese companies.
Mr Morrison has defended the sale of Ausgrid, which he said was affected by secret national security issues, and Kidman, which he dubbed “simply too large” to be held by foreigners.
“The Prime Minister and I are frustrated that we’re not seeing more of that $2 trillion in capital which is there in Australian superannuation savings not lining up on these sorts of transactions, whether it’s those agricultural stations or whether in fact it’s the electricity assets like Ausgrid,” the Treasurer told Sydney’s 2GB radio.
“There is an opportunity now I think for them to engage in that and for example on the Ausgrid sale or on those other properties like Kidman for example where there are some bidders who will price everyone else out of the market, well clearly based on my decisions they’re not in that race so hopefully I would like to see them appearing in the next rounds of transactions. “There’s nothing to stop them (Australian superannuation funds) from going along and bidding today.”
Mr Morrison said union-backed industry funds often made investments based not on financial returns, but political ideology.
“For example, some industry funds for example won’t allow their funds to be invested in coal shares — now that’s got nothing to do with returns necessarily, that’s got to do with politics and their view about those particular issues, so it’s not uncommon for super funds to take a position that’s not just about returns,” he said.
“It’s an argument about returns when it suits them and it’s an argument about politics when it suits them, so I think all Australians would like to see superannuation funds invest more in our own country and in our own industries and they’ve got the opportunity to do that.”
“As a Treasurer, I don’t want to go around mandating that with more regulation and more laws. Here I am on your wonderful program, encouraging them.”
Mr Morrison said he would prefer not to mandate super funds invest in Australian assets, but would encourage them to do so.

One Comment Add yours

  1. stanley okafor says:

    very good, i will like to visit australia to know more about it


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