On 19th August Federal Treasurer Scott Morrison confirmed his earlier decision to block the NSW government’s planned lease of 50.4 per cent of the New South Wales Ausgrid electricity distribution network to two Chinese companies: the Chinese government-owned State Grid Corporation of China and Hong Kong listed Cheung Kong International (CKI). Morrison based his decision on the Foreign Investment Review Board’s advice that these companies represented a threat to the ‘ national interest…on the grounds of national security’. When asked at a press conference what specific security threat was posed by the Chinese bidders Morrison replied: The only person who’s security-cleared in this room to hear the answer to that question is me’.
The Treasurer’s cryptic media release and public comments leave many crucial questions unanswered. In particular, was the security issue the most important factor or were there other important considerations at play? What was this ‘exhaustive process’ and the major parameters applied? (more…)