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Foreign investment proposal: hotel development at Woolloomooloo Bay



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TREASURER

EMBARGO

PRESS RELEASE NO. it

COMMONWEALTH PARLIAMENTARY LIBRARY M IC A H

STATEMENT BY THE TREASURER, THE HON P.J. KEATING, MP

FOREIGN INVESTMENT PROPOSAL: HOTEL DEVELOPMENT AT WOOLLOOMOOLOO BAY

The Government has decided that a proposal by the foreign owned Nara Australia Ltd to enter into a joint venture agreement with the Australian owned Pivot Group Ltd to develop a hotel, office and commercial complex at Woolloomooloo Bay in Sydney is contrary to the national

interest and therefore inconsistent with foreign investment policy.

On 23 December 1988, I announced that consideration of this proposal would be deferred until end-February 1989 to encourage all parties to give further thought to the adverse impact of the complex on a unique area of Sydney.

Nara Australia Ltd is a member of the foreign owned Nara group, which is involved in civil engineering and building, the management of leases and hotels, the operation of restaurants and other leisure/health activities. Nara had been invited by the Australian-owned Pivot group to participate in the proposed project at Woolloomooloo Bay on a joint venture basis.

Woolloomooloo Bay is the last bay on the eastern side of the Harbour Bridge capable of being developed for access by the public of Sydney. All other bays between it and South Head are predominantly privately owned foreshore.

In the Government's view, the proposal to build a 400 room four star class hotel, associated commercial areas, marina, retail shops, restaurants and carparks would only benefit those who use the facilities and prevent the whole area from being developed in a way that will allow full public access to a unique and historic waterfront area.

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It is for this reason that the Government has decided that this proposal does not adequately account for the needs of the people and is therefore contrary to the national interest.

In no way is this decision meant to imply any diminution of the Government’s commitment to welcome direct foreign investment that is consistent with the needs of the Australian community.

CANBERRA 1 March 1989