Senator calls for transparency over $120 million Gundaline sale

Chinese clothing manufacturer Smart Shirts Ltd has purchased Gundaline Station, Carrathool, from Dutch company Optifarm, in a deal worth $120 million.

One of Australia’s largest irrigation enterprises, the sale included Gundaline’s 14,619 hectares of land and substantial water rights.

It is understood the deal includes 12,500 megalitres of Lower Murrumbidgee groundwater, 690 megalitres of low-security river water and 2329 megalitres of Murrumbidgee River supplementary water.

The property also boasts water storage capacity of more than 17,000 megalitres.

The Riverine Grazier contacted the Foreign Investment Review Board for comment on the approval process around the sale.

“The Australian Government reviews foreign investment proposals on a case-by-case basis to ensure they are not contrary to the national interest,” a spokesperson said.

“We do not comment on the application of reviewing arrangements as they apply or could apply to specific cases.”

Deputy leader of the Nationals and Shadow Minister for Water Senator Perin Davey says it’s reasonable for locals to raise questions about the sale.

“The former Coalition Government strengthened transparency around foreign investment in agriculture by reducing the screening threshold for foreign investment from $252 million to $15 million for investments in agricultural land and $55 million for agribusiness.

“All direct investments by foreign government investors will continue to be screened.

“The Coalition also established the foreign ownership register of agricultural land followed by a register of foreign water ownership to strengthen reporting requirements.

“Together they now provide a picture of foreign investment in Australia’s agriculture sector.

“The Treasurer is required to make a decision which ensures that any foreign investment must not be ‘contrary to the national interest’.

“Given it is unclear whether the Foreign Investment Review Board has been asked to provide its advice to the Treasurer on the sale of Gundaline to a Chinese company, or indeed if the Treasurer has considered the sale, it is entirely reasonable for Australians to ask if the Government is following the screening requirements.

“While it is the case that Gundaline was already foreign-owned, therefore it is one foreign owner selling to another, has the Government taken steps to ensure there is not Government connection to the Company which would require screening?”

Smart Shirts is part of the $20 billion Zhejiang-based Youngor Group, founded in 1979.