November 28, 2024
There are calls for the Prime Minister to step in and force the sale of the Darwin Port following revelations its Chinese operator is in financial difficulty.
Opposition home affairs spokesman James Paterson told Sky News Australia Anthony Albanese has an opportunity to intervene and return the port to Australian hands.
“The Port of Darwin is a piece of critical infrastructure it should not be in the hands of a potential strategic adversary,” Mr Paterson told First Edition host Pete Stefanovic.
“This is an opportunity to rectify that and the Albanese Government cannot squander that opportunity.”
Senator Paterson’s comments follow revelations by Sky News that the port’s operator Landbridge Infrastructure Australia had posted a $34 million loss last financial year and was reliant on its parent company the Shandong Landbridge Group for its ongoing viability.
But a directors’ report submitted this month to the Australian Securities and Investment Commission says the parent company is also facing financial issues as it tries to restructure its debt, including a $107 million bond that is overdue and in default.
If these issues can’t be resolved, a third party could be brought in to force the sale of the lease to another company, or the Northern Territory Government could terminate the lease.
Senator Paterson said the revelations about Landbridge’s financial issues “present an opportunity that wasn’t available previously”.
“Previously the advice was that you would have to compensate Landbridge with very significant compensation if you were to cancel the lease, but if Landbridge itself is in such financial difficulty that it voids the terms of the lease itself, then that lease can be cancelled without penalty, and that is exactly what should happen, and the Foreign Investment Review Board should make sure that it does not again go into the hands of a potential strategic adversary,” he said.
The former Giles Country Liberal Party’s decision to lease to the port to Landbridge for 99 years in 2015 caused shockwaves all the way to Washington.
Former US President Barack Obama raised his concerns about the lease directly with then Prime Minister Malcolm Turnbull, famously telling him to “next time let me know”, after the Americans were blind-sided by the deal.
At the time the Foreign Investment Review Board determined it had no authority to examine the deal.
Senator Paterson said the laws had since been changed.
“The Foreign Investment Review Board now has more powers than it ever has and the security of critical infrastructure act gives the minister for home affairs extraordinary powers when it comes to critical infrastructure like the Port of Darwin,” he said.
“The Albanese Government must act decisively to make sure that the Port of Darwin is returned to Australian hands or at least put in the hands of a company that doesn’t pose a national security risk to Australia.”
