Foreigners taking over?
 

Recently over the radio someone said that there are lot of foreigners who are buying up our airports. I personally do not see the problem with this. Money talks after all. But somehow or the other the conversation went on and lead to a lot of callers complaining about the atrocious English speaking pilots who are making grave mistakes on the runway. I agree that these pilots shouldn't be allowed to fly until their language skills improve but it doesn't address the actual topic of conversation. What is so wrong with selling an airport to a willing buyer? Why must it be a native Australian? Just curious about what everyone thinks of this.

The Dolt

Quote:

"Recently over the radio someone said that there are lot of foreigners who are buying up our airports."

I always rest assured when we have authoritative sources such as these.

Well given a country to our north takes an incredible interest in assets, may we enquire as to where you were born?

Given the recent '99 year lease' of a strategic defence asset in Darwin, our question is simple. Can Australians buy an asset in a 'certain country' to our North and if not why not?

So dear comrades, it comes down to national interest and until the very recent past Comrade Andrew Robb et al were selling Australia, (and making circa $900k as a new consultant when leaving parliament) to its new overlord without barely a mention.

Dolt7284, it certainly doesn't have to be, but it's a terrible shame when it isn't, that money doesn't really then flow into our economy, it goes else where. Chinese are extremely astute business people and are very good at making sure their money stays in China and as much of ours goes there as possible too. We end up selling for a short term payoff and then lose the benefits further down the track, keep in mind that if they are buying it then they expect it is profitable so why should we easily or wantonly allow those profits to flow out of our country and into others pockets?

It also has a bit to do with reciprocal rights, how difficult do you think it is to purchase an Airport or any other kind of infrastructure in China without being Chinese and having the right political contacts?

There's nothing inherently wrong with it, but the fact that we seem to be selling a lot of the assets within our country to Foreign Entities is a little troubling and is the reason why there are a lot of laws in place to curb the amount that happens, but even when it comes to those laws, money talks of course...

They shouldn't be sold off at all. In the majority of cases.They are owned,built and paid for with our (taxpayers) money.Did anyone ask us? When assets get bought the buyer can then set fees and charges,rents to suit themselves to get a return on their investment. This then impacts the locals and other users that have to pay it.
There is hardly any choice is there? Not many towns in Australia with numerous airports to choose from unlike the USA.

Based on the little economics that I know. The GDP growth would go up because of the Investment aspect and it will make the AUD stronger because of the demand for it. The money being used elsewhere is because of government mismanagement is it not? I am just curious of everyone's opinion on this. I do agree that there should be reciprocal rights and that the money obtained should have a certain transparency to the usage of such funds though. And I am from NSW by the way. I only ask because I know of a business for sale up in Bankstown airport and BAL is now privatized which got me curious about the grievances it is causing.

Happening all over the country where ever the airport has been taken over by "investors".
At Parafield rents have skyrocketed and continue to rise which means businesses have to raise their prices to cover costs. Customers then sell their aircraft or move the maintenance to regional centers (if they can) to keep it affordable. Business goes bust.
Same with parking/landing fees. 15 years ago you couldn't get a park on the hard stand unless you had contacts or influence. Most private aircraft were parked on the grass. Now....park where you want pretty much. If it wasn't for the college the tower would be closed.

Given that the premise of your question is what is in it for Australia, the answer is not much.

There is a fundamental necessity to distinguish from stock and flow with respect to capital. A stock of capital represents the asset. As other posters pointed out, these assets were built with revenues from previous generations. Adding to Australia's capital stock ought be something that defines a nation. Each nation adding to the stock so that the inter generational contract holds: The current generation leaves it better for the next generation. Was it a government's to sell?

Having built a good stock of capital, the asset (in this case an airport) generates a flow of capital, like landing fees, retail lease space revenue etc. Am sure you get the point. The dividend is derived from the stock.

Privatisation represents a theft. Faced with a baby boom of entitlements, governments of all persuasions realised they could sell what the public already owned, thereby disposing of stock (raise dollars) and then sell the flow of capital (at a discount). Not that much of the capital raised was spent on new projects building more stock and then flow, it went into consolidated revenue: It got spent by the government of the day on 'budget expenditure' be it salary wages or things. It has for the best part of three decades allowed cracks in terms of deficit budgets to be papered over; the proceeds from sale covered the structural problem.

If memory serves correctly, the recent NSW sale of 'poles and wires' for a 99 year lease (total sale) was for a combined dividend(flow) of 17 years. Mike Baird could win an election on the promise of more schools and hospitals, but the state lost the stock and the flow.

The electricity grid in Victoria is pretty much controlled by State Owned Interests of a country to Australia's north. Should Australia actually decide to side with the USA, Victoria may need a lot more wax candles. Same for ports, airports, water and telecommunications. What sort of a government allows this to happen? All Australian governments and Australians voted for it.

Was the real value of the asset ever actually calculated? The same firms that value these assets for the government (nudge nudge) participate in the sale as consultants, underwriters and legal advisors.

The sale of Sydney airport to Macquarie was an interesting discount and such a good deal that Max Moore-Wilton, stepped out of Prime Minister Howard's service, right into the recently privatised Sydney Airport CEO position. Coincidence? More likely a pay off. Mr Robb the former trade minister parachuted out of Parliament into a lucrative gig with the Chinese, having successfully concluded a Chinese FTA just before retirement. Of course pure coincidence too!

Short of a guillotine in Canberra much of Australia's stock, built over decades of nationhood was pillaged by a generation of self serving politicians and Australian let it happen.

The member for canning has made mention of the decision Australia needs to make with respect to our assets.

If Australians think the world under an American hegemony is uncomfortable should a certain country to our north gain ascendancy in our region, and asset sales are one of their strategic platforms, then Australia may well long for a return of a more western empire.

Foreigners taking over
 

With the risk of being hung,drawn & quartered my comments are - we have been selling off Australian assets for years.
examples -
Jandakot Airport - leased to South African interests and under a deal done with ex Minister Peter Garrett the soil on and around JT airport is being mined and sold OFF the airport as landfill - is mining on a Commonwealth lease not illegal??
Its our bloody land being sold for huge profits.Its only a matter of time before a training or commercial,flight lands on one of the huge buildings (some on the approach line) and then it will "hit the fan".
When I approached the local member of state parliament some years ago,I was informed that it was a federal govt decision and completely out of the WA state govt hands.
Another fact which really pisses me off is that you can't wash an aircraft on JT unless its at a designated "washdown bay" as you may damage the Jandakot Water Mound water quality!! What water mound?? The demolition of hundreds of acres of banksia natural areas has all but destroyed what used to be the water mound.But, all the machinery,trucks etc that have. been involved in the said demolition obviously are immaculately maintained to the point that they don't leak fuel,oil or any other contaminates.Bull****

I see. But what are the possible alternatives to this problem? Only let locals buy or have a full disclosure of the funds with the agreement of the majority? Both have shortcomings. Getting an agreement of the majority is very time consuming and I had to wait 18 months just to get a share transfer. Imagine SNPs done with the consent of the majority? That would take years before anything gets done. Accountablity is just word if there isn't an actual plan on how to be accountable for something. Any idea for an alternative?

Glen,
I believe the turn on - turn off environmentalist Peter Garratt had his grubby prints over a lot of those decisions.

How about let's stop selling off the Peoples' commons!

Why should essential monopoly infrastructure devised by our greatest generation, paid for by taxpayers, and maintained by our user fees, now be privatised into *any* private hands?

Fees charged to generate a profit for private entites must come from our clients' pockets. Those profits go into private, foreign hands.

...now let's consider the wisdom of selling those assets to a hostile foreign military power willing to flaunt international law by annexing Sudetenland... sorry... the Spratly Islands, deny foreign military forces Freedom of Navigation in International waters, detain and torture its own citizens, fund pro-government lobby groups and spies in foreign Universities.

Now let's set up a free trade agreement with provisions built in ensuring that the foreign power can sue our government if a change in policy (as should happen in a sovereign democratic nation) that affects their monopoly profits.

....Oh and give them ownership and control of the power grid and telecommunications network.

China now owns key assets throughout Australia and is expanding its military reach towards our shores with bases in Indo and Vanuatu. They have effective military control of the shipping lanes to our main trading partners and control of our technological infrastructure.

I suppose we might as well sell them everything else because we've already lost the war we never fought.

...next time a politician starts going on about the "Anzac spirit" and "their sacrifice to ensure our way of life", just think about what our ANZAC forebears and their Depression-era/WW2 era children would think about the destruction of the free Sovereign nation they died for.

I think you have been watching too much of Alex Jones Info Wars.

The Vanuatu scare was nothing more than a clever ploy by the Vanuatu gov to get Australia to stump up more foreign aid cash. The Chinese have said they aren't interested in Vanuatu and seem to be perplexed that anyone would fall for that.

Australia is paying the price for 50 years of superiority complex. We though we were the best country and became lazy and complacent. meanwhile the other countries learned to play the game hard, negotiate better. Classic example is out free trade agreement with Thailand. The agreement that we signed up to allowed 1,000,000 cars to be exported from Thailand to Australia and we were allowed to export 100 cars to Thailand. If that's the standard of our negotiators, we deserve everything we get.

I'm just back from Port Vila last night....and the Chinese embassy there is truly horrific....

Rated De , beautifully put and agree 100% .... the little people have been observing this for 15 years !

In what way, an Architectural nightmare perhaps?:D

And did you have a look around for Chuckles?

Horatio, flaunt or flout? There’s a big difference.

I bought a meat pie at YSSY's T3 on Wednesday. $10! I don't think the Australian owners care much about anything except gouging. ($27 for car parking too.)

The port of darwin was solds for a song ( not to mention or electricity supply and generation so now we have the highest power prices world wide) they told the Australian navy they have to move out wtf !!!!
Mh370 got lost they came down dropped of all their underwater servalance bouys and then shot though. What you think they really worried about their citizens on that flight lol.