Scott Morrison underscores the importance of considering national security in the issue of China's Ausgrid bid. (Photo : Getty Images)
"National security will be my prime consideration."
This is what Australian treasurer Scott Morrison remarked on the Australian Agenda program, commenting on the crucial decision the Turnbull government has to make about China's Ausgrid bid, media reports stated.
According to a report from The Australian, the government is currently pondering "whether to allow a Chinese company to buy a 99-year lease on half of the major NSW power distribution network."
The issue is quickly escalating as China's claim on the South China Sea continues to intensify. Chinese media has previously warned that Australia "will be an ideal target for China to warn and strike" should it join naval patrols from the U.S. in the contested area.
The report added the Australia's Foreign Investment Review Board (FIRB) is looking into the possibility of allowing two Chinese bidders to lease the grid. The participating firms are the State-owned State Grid Corporation and the Hong Kong-registered Cheung Kong Infrastructure Group (CKI).
The deal is said to be worth over $10 billion.
According to Australian news items, knocking off one or both the Chinese companies the race could ignite a battle between the Liberal Party and the Baird government.
Last year, the Baird government fought in the New South Wales (NSW) election, vowing to use the proceeds of the deal to finance the country's biggest infrastructure building project.
The Australian meanwhile reported that the NSW government is having extensive talks with the bidders and other involved bodies including the FIRB, the tax office and the Australian Competition and Consumer Commission.
The anticipated decision follows the lease of Darwin's port to a Chinese firm, sparking controversies in the country's political scene.
Morrison believes that security factors and concerns will be the biggest factor in the decision.
"It is the prime consideration. It is the most important consideration and always is, the veteran Australian politician said.
"This is why I put David Peever (who headed a major review of the Defence Department) on the FIRB - to have the national security experience and input into these decisions and to assist me making these decisions," he added.
