Former deputy leader of the Liberal Party, Peter Reith has criticised the Abbott government over blocking the sale of GrainCorp, stating that the final decision had little to do with national interest.
Reith, who served under the Howard government said that although the decision was technically made by Treasurer Joe Hockey, it was heavily influenced by members of the National party, Barnaby Joyce and Warren Truss.
“… The reality is that this decision had Tony Abbott's finger prints all over it. And Tony was not alone; he was being supported by Nationals Barnaby Joyce and Warren Truss,” Reith said in an article published on ABC website, The Drum.
“The Nationals were always going to be unhappy with ADM but I never thought that the Abbott government would be the first Australian government to knock back an application to Foreign Investment Review Board from the business community of our close ally the United States. I certainly hope that the Government properly consulted the US as required by our free trade agreement with them – and in a timely manner,” said Reith.
Reith says that the new Liberal government had no intention of starting its term by upsetting the Nationals, implying that the Abbott government is too timid to stand up to the party on particular issues.
“Unfortunately there were numerous signs that the GrainCorp decision was always about politics; in fact Hockey went close to making that point when he talked about disquiet in the agricultural community over the prospect of the sale.
“Needless to say, Joyce did his best to whip up the opposition. It seems that the decision had little to do with the national interest and everything to do with agrarian politics, Queensland style.”
Reith goes on to point out a number of questionable decisions (in his opinion) that the Abbott government has already made including those of paid parental leave, Gonski funding, the deferral of a labour market reform, and now GrainCorp.
“ADM was not such a hard decision. The really hard decisions will be in the budget. I don't have much doubt that Joe Hockey knows what has to be done but all these big decisions have to be endorsed by the PM,” said Reith.
“…Hockey says it should be the subject of a national debate. Australia does not need a debate; we need a government that makes it clear it will not be wasting any more taxpayer money with subsidies for business and that its priority, as promised, is to return the budget to surplus ASAP.”