[Greens-Media] Government should block foreign take over of Coles

[Bennett, Ebony (Sen B. Brown)]

Friday 18 August 2006

Government should block foreign take over of Coles

The government should block the sale of Coles to a foreign owner Greens
Leader Bob Brown said today.

A foreign takeover of Coles would requirement approval of the Foreign
Investment Review Board and ultimately the government.

"It is in the national interest for Coles to stay Australian. It is an
employer of almost 200,000 people and a national icon," Senator Brown
said.

"An overseas buyer will export substantial annual profits out of
Australia. The purchase will not significantly add to the productive
capacity of the Australian economy, or, more importantly, to the export
income earning capacity of our economy and is therefore likely to become
a net long term burden on the current account deficit."

"In the early 1980s combined net foreign debt and investment in
Australia's economy equalled 28% of Australian GDP. This grew to 58% in
1995-96 at the start of the Howard government and then grew to 66% of
GDP by 2005," Senator Brown said.

"We already have decline in competition in the retail sector in
Australia. This is affecting food and petrol prices particularly in
regional Australia."

"A takeover by a US investment bank could also mean big job losses,"
Senator Brown said.


Further information: Ebony Bennett 0409 164 603


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Ebony Bennett
Media Adviser
Office of Greens Senator Bob Brown
Mobile: 0409 164 603
Ph: (02) 6277 3170
Fax: (02) 6277 3185
ebony.bennett at aph.gov.au