Foreign Investment
Review Board
Annual Report 2003-04

 Commonwealth of Australia 2004
ISBN 0 642 74265 0
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10 December 2004

The Hon Peter Costello, MP
Treasurer
Parliament House
CANBERRA   ACT   2600
Dear Treasurer
In accordance with the Foreign Investment Review Board’s responsibility to advise the Government on foreign investment matters, I submit the Board’s Annual Report for the financial year 2003-04.
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, including a copy of the relevant legislation (including amendments resulting from the commencement of the Australia-United States Free Trade Agreement).
Yours sincerely

M.J. Phillips, AO
Chairman

Contents
Main Points	
2003‑04 foreign investment proposals in summary	vii
International investment issues	viii
Chapter 1: Foreign Investment Review Board
Functions of the Board	3
Membership	3
Cost of the Board’s operations	4
Relationship of the Division to the Board	5
2003-04 outcomes	5
Administration of foreign investment policy	5
Processing of proposals	6
Consultation arrangements	8
National interest	8
Handling of commercial‑in‑confidence and personal information	9
Monitoring and compliance activity	9
Chapter 2: Foreign Investment Proposals
Limitations of the Board’s data	15
Applications decided in 2003-04	16
Approvals by sector	18
Approvals by country of investor	27
Compliance	30
Chapter 3: Overview of the Foreign Acquisitions and Takeovers Act 1975
Introduction	35
Notification	35
Examination	36
Other provisions of the Act	38
Other aspects of foreign investment policy	38

Chapter 4: International Investment Issues and Australia’s International Investment Position
Introduction	43
Multilateral investment issues	44
Organisation for Economic Co‑operation and Development (OECD)	44
OECD Investment Committee	45
OECD Guidelines for Multinational Enterprises	47
World Trade Organization (WTO)	49
Asia‑Pacific Economic Cooperation (APEC)	50
Bilateral investment issues	51
Investment Promotion and Protection Agreements (IPPAs)	51
Other agreements involving investment	52
International investment position	57
Useful references on international investment issues	66
Appendix A: 	Summary of Australia’s foreign investment Policy		69
Appendix B	: Legislation, Policy Statements, Publications and Press Releases	87
Appendix C: 	Chronology of Policy Measures	95
Appendix D	: Foreign Acquisitions and Takeovers Act 1975	105
Appendix E	: Foreign Acquisitions and Takeovers Regulations	159
Appendix F: OECD Guidelines for Multinational Enterprises	181
Appendix G: Contact Details	199