Australia’s relationship with China was a key discussion point on the Federal Election campaign trail on Saturday amid a fiery debate over the Port of Darwin.
Both Prime Minister Anthony Albanese and Opposition Leader Peter Dutton made announcements related to bringing the port back under Australian control.
In 2015, the Northern Territory’s Country Liberal Party government leased the port to Chinese company Landbridge Group for 99 years.
Mr Albanese denied his government had committed to returned Australian ownership on the basis of a threat to national security, telling reporters Labor “made a decision about our economic resilience, consistent with a position that I have put since 2015”.
The Prime Minister was further quizzed about whether forcing the Chinese company out of the port would impact relations with Beijing.
“No. My job is to stand up for the Australian national interest. I’ll continue to do that,” Mr Albanese said on a visit to Longreach, Queensland.
“But I note that our relationships with China, and our economic relationship, has improved to the point where… more than $20 billion of exports have returned.
“That’s about Australian jobs and Australian interests.”
Mr Albanese said his preference was for the port to be under Australian ownership through the private sector, possibly by superannuation funds.
However, he has committed to using the government’s compulsory acquisition powers to kick out Landbridge Group.
“I want this to go into Australian ownership. But I’d prefer it to be Australian ownership under the private sector. But, if need be, we will purchase as well,” Mr Albanese said.
“Most of our ports and airports are in private hands. The question is – is it in the hands of Australian national interests?
“One of the things about superannuation funds, which own substantial assets in our ports and our airports… is that superannuation funds mean that all of you who have super accounts own those assets as well, and they get returned to Australians.”
Mr Albanese stopped short of putting a timeframe on removing Chinese ownership over the port.
“We’re prepared to do it on the basis of proper commercial advice, which we are continuing to engage Treasury and Finance. We are a mature government that does things in an orderly way, and we’ll continue to conduct ourselves in that way,” he said.
The Prime Minister would also not be drawn on how much compulsory acquisition would cost taxpayers, with the Chinese company only 10 years into its 99 year lease.
“This is a commercial position. If you’re going to an auction to buy a house, you don’t say, ‘This is how much I’m prepared to offer’, what you do is enter into commercial discussions. Because we want to protect taxpayers, not to just engage in speculation,” he said.
Mr Dutton earlier confirmed that if the Coalition is elected on May 3, it would “immediately secure the Port of Darwin by facilitating the return of the port to an Australian government-approved operator”.
“A Dutton Coalition government would not permit the lease of the port to any entity that is directly or indirectly controlled by a foreign government, including any state-owned enterprise or sovereign wealth fund,” a statement said.
“If a private lease cannot be facilitated within six months of the process commencing, as a last resort, we will act to acquire the lease interest in the port using the Commonwealth’s compulsory acquisition powers. Under this course of action, the Australian government would compensate Landbridge Group.”
Mr Dutton told reporters in Darwin that the Coalition “had contact yesterday with the Chinese Ambassador, out of respect, before we made this decision”.
“We can have a good trading relationship and a respectful relationship with China which is why we spoke to the Ambassador ahead of the announcement that we made and I note that the Prime Minister or the Foreign Affairs Minister didn’t do that,” he said.
Mr Albanese said he found the remarks about discussions with the Chinese Ambassador to be “very strange”.
“Well, he’s obviously got better connections with the Chinese Ambassador. That’s a very strange thing for him to say. I’ll just leave that sitting there,” he said.
The Opposition Leader said bringing the port back into Australian hands was “about standing up for our national interest”.
“As defence minister, as home affairs minister, I think I’ve demonstrated every day as well as a police officer many years ago, that I will take the decisions that sometimes are the hard decisions but the decisions that will make our country safe,” Mr Dutton said.
“The trading relationship with China is incredibly important and I want to make sure that we can expand it but ultimately as China does we have to make sure that Australia stands up for her national interests.
“An Australian company wouldn’t be able to operate a port in Beijing and we’re saying here in the circumstances, in this time, as the Prime Minister points out rightly, I think we live in the most precarious period since the end of the Second World War.
“And I think it’s appropriate that we take the actions that meet the pressures and the concerns and the threats of the time.”
Mr Albanese said there was “nothing spontaneous” about his announcement during the election campaign, after it was described as a late play to steal the thunder from Mr Dutton’s announcement in the Territory.
“I foreshadowed on Thursday… a future announcement about the Port of Darwin. We have a clear view, which is that it should be in Australian hands. And Peter Dutton was in the Cabinet that sold it,” he said.
Outrage over the lease forced the then Turnbull Coalition government to change laws so state and territory asset sales come under the Foreign Investment Review Board.
Mr Dutton stopped short of agreeing the Coalition’s decision to lease the port to Landbridge Group in 2015 was a massive blunder but said the circumstances had “deteriorated” under the Labor government.
“Well, this was a decision of the Territory government 10 years ago. I think what’s most important is what circumstances do we find ourselves in now,” he said.
“It has deteriorated, just even over the last three years. That’s the advice of the intelligence agencies to me, and it is a necessary response and we’ve been prepared to stand up for our national interests and we are very happy to do that.”
On Friday evening, Terry O’Connor, Non-Executive Director for Landbridge in Australia, said in a statement: “As previously stated, and confirmed by our owner, the port is not for sale”.
“Landbridge considers the Port a long-term investment that has reported record operational performance this year. We expect this growth to continue in the future,” he said.
