14.1 C
Byron Shire
June 24, 2024

NZ decides who buys their assets – what can we learn?

Latest News

$6.8 million Tweed pound contract awarded

The Tweed Shire Council has awarded a $6.8 million contract for design and construction of a new state-of-the-art animal pound and rehoming centre.

Other News

Byron business perspectives in a tough winter 

Having traded in Byron Bay for 47 years, Skallyrags owner, Rob Bass, said he’s never seen a winter like this one.

Max to the Max

As a young man who grew up in the Byron Shire, Max McAuley discovered his talent for dance and performance at an early age. When his parents saw him playing music videos over and over again and copying the choreography, they decided it was time to enrol him in formal dance lessons.

MP and Cr call for inclusion of social housing in Ballina

Ballina Shire Council will receive $210,000 through the NSW government’s $100 million Resilient Lands Program to help support the delivery of a range of housing options across the Ballina Shire.

Mandy Nolan’s Soapbox: PFAS-ed Off

Whenever a cloudy day hits Mullumbimby we all know it’s only a matter of time before someone’s on a community Facebook group warning people about chemtrails. I’ve sat in a Meet the Candidates and heard an audience member ask an MP what they are going to do about chemtrails and watched them squirm.

Teething problem

I think it’s really stupid and potentially dangerous that the concept of an absorption period of charging a lead...

Wilsons Creek Public School scoops NSW Landcare award

Wilsons Creek Public School was honoured with the Woolworths Junior Landcare Award on June 3 at the NSW Landcare Awards.

Lynne Wilkinson

We can learn a lot from New Zealand as they give priority to their own wealth creators and long-term national interests. New Zealand dairy farmers recently won a case in their Supreme Court to stop the sale of eight dairy farms to China.

The case was won on the basis that the long-term economic value of these farms would be lost to the New Zealand economy if foreign interests bought them. New Zealand has several issues in their favour. Their government must be notified of, and approve, any sale of land more than five hectares. The Maori Treaty signed with the British allowed the sale of land to the Crown but protected the people from the acquisition by other foreign powers.

In Australia foreign sales are not noted unless they exceed $244m or, in the case of the USA, $1001m.

Recently Cargill, a privately owned US family company, has bought the prized Billabong station near Wagga Wagga through its hedge fund, the Black River Asset Management Group (an unlisted Cargill family company). They paid around $9m for the property. Given that Cargill already dominates beyond the farm gate in our beef and wheat exports, the wealth created from these assets do not stay in Australia. If this were an Australian company the ACCC would be limiting its dominance in the local marketplace.

Under the rules of withholding tax in Australia, foreign buyers who borrow offshore, or use offshore consultants as expenses, to purchase and run business here, pay only 10 per cent withholding tax on expenses offshore. This means profits from these assets are not circulated within the Australian economy as they go offshore before profits are declared and tax paid on profits. Unlike public companies, private companies are not easily scrutinised and millions of dollars of profits are siphoned off Australian shores before tax.

In the meantime our governments give subsidies to foreign companies to set up business in competition with local manufacturers (OLAM Singapore almond processing) or sell our assets and intellectual property to foreign interests (Victorian Dairy Research Centre to China) leaving local bidders out.

Our interest rates are among the highest in the world and we have a ‘for sale’ sign on. We need to learn how to manage our wealth-creating assets for our long-term benefit, not just for the benefit of foreign interests. We have much to learn.

Lynne Wilkinson is CEO of Ausbuy, a not-for-profit organisation representing Australian-owned companies supplying goods and services to consumers and businesses since 1991.

Support The Echo

Keeping the community together and the community voice loud and clear is what The Echo is about. More than ever we need your help to keep this voice alive and thriving in the community.

Like all businesses we are struggling to keep food on the table of all our local and hard working journalists, artists, sales, delivery and drudges who keep the news coming out to you both in the newspaper and online. If you can spare a few dollars a week – or maybe more – we would appreciate all the support you are able to give to keep the voice of independent, local journalism alive.


Please enter your comment!
Please enter your name here

Curtains up on Byron High’s debut musical

After many months of hard work and rehearsing, Byron Bay High School students and staff  are about to perform their musical whodunnit on June...

Wallum developer welcomes arrests

The developer behind the beleaguered Wallum urban subdivision on rare and sensitive land in Brunswick Heads welcomed the recent arrests of protectors who have blockaded the site over the last four months.

Fresh police appeal for witnesses in Gage Wilson case

Police have issued a fresh public appeal for witnesses in the case of missing Mullumbimby man Gage Wilson.

Ballina MP mostly welcomes state budget announcements

Greens Member for Ballina Tamara Smith has welcomed some of Labor’s funding announcements in last week’s state budget, including a new Fire and Rescue station for Byron Bay and more firies.