Media Release

28 October 2016: KAP Member for Kennedy Bob Katter has called for unequivocal assurances on the Shanghai/CRED Kidman bid and has re-asserted that foreign investment is not all the free-marketers make it out to be. The comments come as news that an Australian Consortium, BBHO, bidding for the Kidman Empire has withdrawn from the bid process the day after Shanghai/CRED trumped the Australian bid by $500K.

“There cannot and should not, be any Foreign Investment Review Board (FIRB) or Government approval for the sale, unless and until, there is a guarantee provided by the Government that there will be no movement of a majority shareholding of this bid across to Shanghai CRED.

“Unless that assurance is given, then Australians will quite rightly assume that they were deceived by the Government before the election, Mr Katter said”

On Sunday BBHO a consortium of four Australian cattlemen families, trumped the Shanghi CRED/ Reinhart bid by offering $386m. Yesterday Shanghi CRED/ Reinhart offered an extra $500,000 – making the bid $386,500,000. Today BBHO have announced they will be withdrawing from the bid process. It is understood BBHO first entered the Kidman bidding process over two months ago.

“Before the election, on the announcement of the Government knockback, we said that ‘as sure as the sun rises tomorrow, Shanghi CRED will be back after the election wearing a different suit of clothes’. And that is exactly what has occurred.

“The flowing of money into Australia from the foreign ownership of another 2% of our Country’s surface area will result in Australian’s receiving, we would estimate, under $100m a year from this asset being foreign owned.

“If an Australia owner-operator group are allowed to take control, then $400m a year will come into the Australian economy. Firstly, with owner operators there is always a 30% increase in production, and secondly no money will go out of the country. The whole $400m a year will go into the pockets of Australians.

“The cost structures are very low, and the debt structures are very high in cattle. The debt servicing will go to China, as well as the profits. So every time you see this wonderful foreign investment, what is happening is - instead of $400m a year going into Australian pockets, $100m will go into Australian pockets.

“The Government and the opposition sit there and tell us that this is good for Australia. There are odd times that this might be, but this ain’t one of those times.

“The ALP has not got a good history of standing up to foreign takeovers. However, we will be discussing with the ALP the stopping of the sale by parliament.

“The full story of what has gone on behind closed doors needs to see the light of day.

Mr Katter will co-sponsor legislation in the House of Representatives with NXT party Member Rebekha Sharkie MP (with Senator Xenophon and fellow NXT Senators doing the same in the Senate) to amend foreign takeover laws to ensure any commercially equivalent Australian bid gets priority over a competing bid with foreign interests

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