CANBERRA – The Foreign Investment Review Board will be
given oversight of the proposed sale by state governments of critical
infrastructure assets to foreign firms, Federal Treasurer Scott Morrison says.

He told reporters in Canberra this morning that the new
measures would reflect the Turnbull Governments’ policy to be “open, transparent
and sovereign in foreign investment decisions.”

“Foreign investment is an important source of capital to
build the infrastructure that Australia needs and the Government recognises
that this investment can provide access to funds to restore and enhance ageing
infrastructure networks and assets.

“The Government recognises this investment should occur
on our terms, must be appropriately scrutinised and no be contrary to national
interest.”

The move comes after an outcry over the leasing last
year of the strategic commercial and military Port of Darwin by the Northern
Territory government to a Chinese firm said to have close ties to the Chinese
military.

The Landbridge Group, owned by Chinese billionaire Ye
Cheng, was announced in October as the winning bidder for a deal to operate Darwin’s
port in a deal worth $506 million.

Prime Minister Malcolm Turnbull publicly defended the
deal following reports that United States President Barack Obama had expressed
anger at Mr Turnbull for not having informed him of the deal.

Darwin is a hub of cooperation between a rotation of US
Marines, as well as the terminus for a critical underwater data cable.

“From 31 March this year, the Foreign Investment
Review Board (FIRB) will formally review critical infrastructure assets sold by
state and territory governments,” Mr Morrison said.

“While governments can and do work with the
Commonwealth when selling such assets, the proposed change will formalise the
process and ensure that future sales of critical infrastructure to privately
owned investors are scrutinised under the FIRB arrangements.”

Mr Morrison said that the changes would not be retroactive
when asked if the move was being taken in response to the Darwin port lease.

Although it is officially listed as a private company,
chairman Ye is a delegate on the advisory body to China’s rubber stamp
parliament, a high-profile but largely ceremonial position handed out to
Communist Party backers.

The Australian Strategic Policy Institute called the
Landbridge Group a “front” for China’s People’s Liberation Army in a
paper published last year.

– with Reuters