Fed: Woodside decision should follow procedure, says PM

AAP General News (Australia)
02-11-2001
Fed: Woodside decision should follow procedure, says PM

CANBERRA, Feb 11 AAP - Prime Minister John Howard today shied away from intervening
in a foreign takeover bid for Woodside Petroleum, but emphasised he did not want Australia
becoming a branch office economy.

The Australian Democrats have called on Treasurer Peter Costello to oppose Royal/Dutch
Shell's proposed $10 billion takeover of Woodside Petroleum Ltd.

Shell wants to increase its stake in Woodside to 56 per cent from its current 34-per cent stake.

The Foreign Investment Review Board was last month given up to 90 more days to consider
Shell's approach to Woodside.

Mr Costello has the power to block the bid if it is deemed not to be in the national interest.

Mr Howard today said natural justice must be followed.

"There's a correct procedure to be followed which involves the recommendation of the
Foreign Investment Review Board and then consideration by the Treasurer," Mr Howard told
the Nine Network's Sunday program.

"And the law requires that natural justice be given to everybody."

Mr Howard said he did not want to talk about the specifics of the bid for Woodside
Petroleum due to constraints in the law.

But he said he wanted to separately emphasise his concerns for the future of the Australian
economy.

"Can I separately from that particular issue just make the comment that I am concerned
to ensure that this country does not become a branch office economy," Mr Howard said.

"Very concerned. And I think some of the views that have been expressed by people on
this issue are very pertinent.

"And my commitment to globalisation and my commitments to open markets does not follow
me to the reality that economic sovereignty and economic independence and economic dignity
is a very important part of political independence and political dignity."

Both the WA and Northern Territory governments have raised concerns that Shell may
face a conflict of interest over its gas developments in the region, with Asia possibly
taking precedence over Australia.

Mr Howard said his comments on national economic sovereignty should not be misunderstood
as pre-empting any decision on the bid.

"I don't want to talk about the specifics of that because I am constrained by the realities
of how the law operates," he said.

"And that might be misunderstood by some people as in some way pre-empting the proper process.

"That is why I have said I won't talk about the details of that."

AAP lm/pc/sb

KEYWORD: WOODSIDE HOWARD

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