The Foreign Investment Review Board’s (FIRB) Report for 1999-2000 was released today.
The Report outlines the activities of the Board, provides a summary of the year’s foreign investment proposals, comments on the more significant cases and reviews trends in foreign investment in Australia and Australian investment abroad. The Report also has a number of Appendices that provide supporting material on foreign investment policy and include the text of the OECD Guidelines for Multinational Enterprises. The main points in the FIRB’s 1999-2000 report are as follows:
- With changes to foreign investment policy in September 1999 there were 4,003 proposals decided in 1999-2000;
- Of these 3,907 were approved (2,737 with conditions, mainly in the real estate sector) and 96 were rejected. There were 4,754 approvals (2,918 with conditions) and 112 rejections in 1998-99.
- During 1999-2000 there were 8 divestiture orders.
- Approvals in 1999-2000 involved proposed investment (either alone or in partnership with Australians) of around $78.0 billion. This represented a 16 per cent increase on the previous year’s approvals of $67.0 billion. Approvals do not necessarily mean investments proceed.
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- The value of approvals increased in the services sector (excluding tourism) from $22.6 billion in 1998-99 to $25.0 billion in 1999-2000. Approvals for manufacturing increased from $16.5 billion to $21.7 billion and for real estate declined from $11.2 billion to $9.5 billion. After a sharp decline in the tourism sector in 1998-99, the value of approvals increased from $1.1 billion to $2.4 billion in 1999-2000.
- The 221 largest proposals (each with proposed investment of more than $50 million) accounted for about $68.4 billion or about 87 per cent of total proposed investment.
- The United States remained the largest source of proposed foreign investment in Australia during 1999-2000 accounting for around 38 per cent of the total. The other major source of proposed foreign investment was the United Kingdom, its proposed investment in Australia remained steady at $11.5 billion in 1999-2000 or 15 per cent of the total. The next largest contributors of proposed foreign investment in Australia during 1999-2000 were Singapore, Hong Kong and South Africa with proposed investments valued at $5.2 billion, $4.1 billion and $3.1 billion, respectively.
The FIRB report for 1999-2000 will be tabled when Parliament resumes in February 2000.
Copies of the Foreign Investment Review Board Report 1999-2000 can be purchased at Australian Government Info Shops and accessed at http://www.firb.gov.au on the internet.
The website also provides, access to the Foreign Acquisitions and Takeovers Act 1975 and Foreign Acquisitions and Takeovers Regulations 1989 as well as current guidance notes helping people to understand their responsibilities under the Act and how to complete a foreign investment application.
MELBOURNE
21 December 2000
Media contacts: Richard Allsop Assistant Treasurer’s Office (03) 9650 7274
Peter Biggs Executive Member, FIRB (02) 6263 3763