Senator Joyce said today that the Qantas private bid was not in the national interest for a variety of compelling reasons.

Firstly, the bid will take an Australian icon out of the hands of ordinary Australians and put it into the hands of faceless multinationals with no particular loyalties to Australia and its national interests. These multinationals move money around the globe in search of quick profits and face little if any accountability for their actions. They can abandon Qantas at a drop of a hat, leaving Australia and Australians to pick up the pieces in the event the airline fails or if the bid partners can’t make enough money out of Qantas – The phrase “All care, no responsibility” comes to mind.

Secondly, the very high level of debt in the bid raises real risks about the long term viability of Qantas. High debt levels have previously concerned a US regulator considering a private equity bid by Texas Pacific. For example, the Oregon Public Utility Commission specifically mentioned high debt in its decision to block a bid by Texas Pacific for an electricity company in the US State of Oregon. In particular, there was concern that the proposed high debt structure of the bid in that case would threaten the viability of the company and leave Oregon’s electricity consumers vulnerable if the company failed. What would happen to ordinary Australian’s if a highly geared Qantas collapsed?

Thirdly, the proposed overlap in ownership between the Qantas and Sydney Airport raises very real concerns about the future treatment of Qantas competitors at the Airport. In bound tourism through Sydney Airport could be threatened if Qantas competitors faced discriminatory treatment by the Airport.

“A US regulator has stood up to a private equity bid not in the public interest, so why can’t Australia do the same to protect its national interests?” asked Senator Joyce.

“I look forward to the results of the FIRB inquiry, and I also reserve the right to vote for a Senate inquiry at the end of February, if required,” Senator Joyce added.