A solution to the foreign sale of Australian farms

The emotional and political debate about the sale of Australian agricultural assets, particularly to Chinese interests,   needs a more objective perspective. 

Two types of assets

Cubbie Station - a political football

What is an asset like Cubbie Station?  It's actually two assets. One is the land and resources under the land. The second is the right to produce food or crops from farming. 

This isn't just a technical point, it's critical to the security of Australia and to the debate. 

Separate the assets

A lot of the debate quite rightly surrounds the ownership of large tracts of Australia by foreign owners, especially foreign governments.

There is also acknowledgment that Australia lacks the capital and commitment to farm our arable resources to their full capacity. So, we need to work with foreigners to make productive use of the land.

So, we can lease the asset, rather than sell it. 

The UK model

For centuries, the UK property model has sold long term leaseholds over residential property.  If you "buy" a flat you are most likely buying a 90 year lease, not the freehold. 

We should adopt this model for significant Australian agricultural landholdings. Sell a 100 year lease. It provides food security for the Chinese buyer, but does not relinquish the ultimate ownership of the Australian land. 

Selling long term leases of Australian agricultural properties is a win-win for all. 

Let me know what you think. 

Mark S 

Genetically modified. Innovative. Productive.

With the focus on Australian productivity, and the decline in manufacturing, we will soon be seeing stories about the innovation of Australian industry.  Today's announcement by the Queensland University of Technology developing genetically modified, iron-rich bananas for the Indian market is a great example.

We should praise scientific innovation - including GM

There has been a lot of criticism of GM food over recent years, but little focus on the benefits.  One of the world's great problems is food security.  As the world's population grows, we need to find methods to increase the amount of nutritious food grown on our limited amount of arable land.

GM is a fantastic example of scientific innovation.  If GM can add iron to bananas, that's something for Australians to be proud of.  Sure, there are many criticisms of GM - some valid, some less so - but the road from innovation to success is never a straight one.

Manufacturing productivity not old style factories

As Australia rapidly moves away from old manufacturing to new, value-added manufacturing, we should encourage scientific advances in agriculture.  The more that we shine a positive light on high-tech research and development efforts leading to high-tech manufacturing, the less we will be concerned about the loss of old-style factory jobs.

Libertarians support the free market

Philosophically, I'm also in support of less controls rather than more over new innovation.  If we want to be productive, and creative, we should release the chains on new ideas.  Whether it is the production of GM crops, or the creation of edgy art and movies, let's embrace new ideas - even if they subsequently fail.

It's good to see positive stories about Australian science and innovation.  Let's keep focusing on the good, not the bad.

Let me know what you think

Mark S