(Cairns... Far North Queensland)
The reality of foreign ownership by multi-national companies operating in Australia, paying little or no tax, is one of the inevitable results of the foreign take-over of Australian companies.
It ought to determine the approach that is taken by Australian officials in the negotiations on the Multilateral Agreement on Investment. This is part of the same structure as the:
and the rest of the lame duck policies in Australia's foreign trade stable, into which we have been dragged by our Governments determination to go along with the World Bank and the International Monetary Fund.
The Multilateral Agreement on Investment proposes that every member of the World Trade Organisation (which includes Australia) must accord to foreign companies full rights to establish themselves in all sectors of the economy of that Country. Additionally, the so-called host country, 'Australia', is required to adjust its domestic laws - and, if necessary, to repeal any existing laws and policies - that may favour local industries at the expense of the foreign companies. This means that any significant local company in Australia will have an axe over its head.
Since the Australian Taxation Office has admitted that it cannot effectively collect taxes from multinationals, (see Tax Reform) the Australian companies that will be taken over by them will effectively be, free from tax.
The Federal Government must be 'out of its mind' to even consider such advantages to multinational companies over Australian companies.
There must be immediate audit of the Foreign Investment Review Board for allowing an alleged 90% of Corporate Australia being foreign owned. A review of The Foreign Acquisitions and Takeovers Act - 1975 is imperative to eliminate current areas subject to abuse and which are contrary to the national interest.
Australia's wealth MUST be re-invested in Australia.
Written and Authorised by Selwyn Johnston, Cairns FNQ 4870 Australia