Letter to the Editor - The Weekend Australian - March 21-22, 1998
I note that a number of contributors to the Letters to the Editor have claimed that the proposed Multilateral Agreement on Investment (MAI) would prohibit the Government placing restrictions on foreign ownership of Telstra.
This is not the case. Under the MAI being negotiated all countries, including Australia, will be able to lodge exceptions, including one covering floats of public corporations.
This would ensure that the Government reserves the right to undertake such floats on the basis that it determines.
Despite the many claims to the contrary, Australia’s exceptions to the proposed treaty would remain in place as long as the Government so determines.
The Government would not agree to the MAI if it did not permit exceptions or if it required that exceptions must be repealed after a particular period of time.
Indeed, the government will not agree to this, or any other treaty, unless it is demonstrably in Australia’s national interest.
Protecting our national interest involves ensuring that any agreement on the MAI does not override or weaken our current domestic policies, whilst ensuring that the treaty delivers benefits to Australians and Australian investors.
The proposed treaty has been referred to the parliamentary Joint Standing Committee on Treaties for examination and an interim report by May 25. The committee has called for submissions by April 30. For further details contact the committee secretariat on (02) 6277 4002.
Rod Kemp, Assistant Treasurer, Parliament House, Canberra.