Gippsland Pages NEWS ONLINE

China State-backed giants who want to buy the world

Government-controlled funds from China and elsewhere are snapping up Western companies, writes Oliver Morgan. Should we be worried?

Protectionism is making a comeback. At least, that is the fear of many influential figures - from senior officials at finance ministries to politicians and independent economists. These experts are, generally speaking, pointing their fingers from West to East, from the US and Europe to China, Russia and the Gulf, and they are being specific about the threat.

A new breed of global investment behemoths, the so-called 'sovereign wealth' funds (SWFs) - effectively state-controlled investment funds bankrolled by huge foreign exchange surpluses or petrodollars - want to buy up, among other things, western companies. This could provoke protectionist calls from populist politicians.

Last week, for example, the German government was reported to be setting up an agency to examine acquisitions by these investment colossi, concerned that they could pose a threat to national security, particularly if they bought a major bank. A day later, the IMF joined calls for greater scrutiny of what it calls 'black boxes' through which increasing financial flows are funnelled.

There are also questions about whether it is desirable for companies in the UK, say, to be owned by foreign governments whose commitment to capitalism and democracy may be shaky.

A week ago, a US Treasury official, Clay Lowery, stated baldly that there was a risk that 'the size, investment policies, and/or operating methods of these funds fuel financial protectionism'.

RESIDENTS of Lakes Entrance have fled to higher ground as strong winds and another high tide threaten to push a wall of water through the Gippsland coastal town today.

The rising flood level peaked at 1.5 metre overnight and had eased early today but the relief appears to be only temporary.

An State Emergency Service spokeswoman said the high tide and winds reaching up to 50km per hour are expected to bring water surging through the town's streets again today.

"We are expecting the level to go back up again,'' the SES spokeswoman said.

"There is another high tide coming through this morning and stronger winds of up to 50km per hour are expected, which is going to push the water towards Lakes Entrance.''

The SES and Country Fire Authority have been notifying residents to evacuate the town and so far 200 people have registered with the emergency services' community relief centre.

"Some residents have stayed in their homes and others have gone to higher ground,'' the spokeswoman said.

The residents have also had to cope with power cuts overnight.

She said the Princes Highway between Nowa Nowa and Bairnsdale has reopened but that could change when the water levels start rising again.

"The wind will be the influencing factor,'' she said.

Homes and businesses have been extensively damaged in the township that was awash in the wake of a king tide on Thursday night.

The SES spokeswoman said the rain had stopped this morning with some blue sky breaking through the clouds.

"LAST smokes" will be the call at pubs throughout the state on Saturday night, as midnight marks the start of Victoria's smoking ban.

While health groups celebrate the prospect of easy breathing in bars, some pubs are preparing for last-puff parties.

At Labour in Vain, on Brunswick St, Fitzroy, barman Luke Stockdale is promoting a Farewell Cigarette Party, to feature smoking-themed entertainment.

At a bar where all seven staff, as well as the owner, are unrepentant smokers, Mr Stockdale says the ban will change the atmosphere.

"We're used to ducking around the bar to have a mid-shift smoke. Finding time . . . to go outside for a smoke is going to be a challenge," he said.

But for the patrons, after midnight will only mean walking upstairs to the rooftop beer garden.

It's a cold prospect, and owner Roman Leopoldseder is still waiting on Yarra Council to approve an application to build shelter over the garden.

"There's a huge log jam of applications -- a lot of bars have had to renovate to look after their smokers," he said.

Around the state, councils have received more than 100 similar applications from venues trying to accommodate smokers.

While some publicans have said they won't enforce the bans from midnight, but will wait until the next opening of business, Mr Stockdale said the midnight deadline would be marked at Labour in Vain


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China State-backed giants who want to buy the world

Gippsland residents flee new high tide

RESIDENTS of Lakes Entrance have fled to higher ground as strong winds and another high tide threaten to push a wall of water through the Gippsland coastal town today.