Decisions by state governments to scrap major projects and oppose foreign investment are putting jobs and wealth at risk, Trade Minister Andrew Robb says.
Mr Robb, who is in Hong Kong with a business delegation, says some investors are now building in a "risk premium" because big infrastructure projects such as Melbourne's East West Link are being shelved.
"We've got to think of our dependence for the last 200 years on foreign investment to help us maintain and grow our industries," Mr Robb told Sky News on Friday.
"This is being put in jeopardy. The cost of finance is going to be significantly increased; it's going to cost us billions of dollars on all sorts of future projects that any government in Australia enters into."
Mr Robb said Chinese business leaders and officials are also bemused about the "xenophobia" of NSW Labor's election campaign attack on the potential for the electricity industry to be leased by Chinese interests.
"This is very dangerous territory to go down and it is hugely irresponsible," he said.
"People are confused about what Australians think of them and ... how welcome people are to trade and investment in this part of the world."
Opposition trade spokeswoman Penny Wong says such comments are extraordinary for a trade minister.
"What part of the Australian minister for trade and investment's job description involves making comments that will actively deter investment in this country?" Senator Wong said.
She argued the government has put in place barriers to investment in agriculture and agribusiness, and put off investors by proposing changes to the renewable energy target.
Share
