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Unearthing the Last Resort Power: The Bedrock Implications for the National Interest

  1. Introduction

The extent of government intervention in financial markets is a polarising issue, having effectuated the rise and fall of nations, engendered heated political discourse, and even been used as the justification for international conflict. The complex and multifaceted nature of government intervention is not relegated to the macroscopic spheres of society – instead these interventions impact the experience of the citizen, their financial welfare, rights, and wellbeing. An intricate web of economic interconnectivity has transcended the traditional geographic and political boundaries. The ease of human mobility across borders is supplemented by the fluidity of capital flow, giving rise to a new set of legal considerations pertaining to geopolitical stability.

The influx of foreign capital, whilst providing a catalyst for sustained economic growth, presents nuanced challenges relating to the intricate balance struck between economic globalisation and State sovereignty. The inception of the last resort power into the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) reflects a judicious and strategic legislative update, effectively balancing Australia's national interests with the globalisation of investment.[i] The provisions demonstrate foresight in establishing robust control over critical national resources, a particularly vital measure amidst escalating international tensions. At its core, the paper will delve into Administrative Law’s role in the control of government action, beginning by exploring the historical background of the Foreign Investment Review Board (FIRB, the Board) regime, providing a foundation for examining the justification for the last resort power. The analysis will shift toward the philosophical underpinnings of national interests and their interplay with the principles of procedural fairness. Ascertaining the fundamental principles of Australian Administrative Law will encourage reflection on the extent to which the FIRB framework complies, allowing a conclusion to be made as to whether it constitutes good law.

Members can access the full article by visiting the following link:

https://erlaw.org.au/LinkClick.aspx?fileticket=xez45Q5n1S0%3d&portalid=4

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