Security, defense fears eased over Darwin port China lease

Australian Defence Minister Linda Reynolds says the government has "no current strategic concerns" over a controversial lease of Darwin's port to a Chinese company for 99 years, ABC News reports.

It came after the Federal government proposed new powers last month giving it authority to regulate all agreements that state and territory governments, councils, and public universities make with foreign powers.

The 2015 decision by the then CLP Territory Government to lease Darwin's Port to Chinese-owned company Landbridge for 99 years sparked concerns in Australia's defence and diplomatic community.

It caused a rebuke by the then US president Barack Obama, who directly raised concerns with then prime minister Malcolm Turnbull.

Speaking today in Darwin at a joint press event with the US ambassador to Australia, Arthur B. Culvahouse Jr, Senator Reynolds said the Darwin Port was not a current concern.

"We don't have any current defense or security concerns in relation to Port Darwin," she said.

"We can't forget that the main defense port here in Darwin is HMAS Coonawarra, not Port Darwin."

The Federal government's proposed Foreign Relations Bill does not have the capacity to scrutinise the Port of Darwin lease because the bill excludes commercial agreements between corporations.

However, that did not stop NSW Liberal senator Concetta Fierravanti-Wells from raising the Darwin Port lease as an example of what the new proposed federal powers should target.

"We need to look at practical ways to protect our sovereignty, starting with the Port of Darwin," she said.

Luke Gosling, Labor MP for Solomon, also raised concerns over Port Darwin, and argued the Foreign Relations Bill should look into the lease.

"The Federal Government have just tabled a Foreign Relations Bill to deal with arrangements such as the Darwin Port Lease so it's hardly encouraging that the [Federal] Government has taken the Darwin Port lease off the table before debate even begins," he said.

"It's one of the most important pieces of critical infrastructure in our nation, for both defence and commercial purposes," he said.

Senator Reynolds is in the Top End on a five-day tour of defence establishments, visiting sites which will reap the benefits of an A$8 billion spend by the Federal government on defense infrastructure over 10 years; part of a much larger expansion of Australian military assets.

No new funding announcements have been made by the Federal government so far during the visit, but NT Chief Minister Michael Gunner has alluded to a significant defence project announcement.

"We are geographically, strategically important, that's been evident for a while, obviously we had President Obama visit here and they've got their pivot to this region happening," he said.

"Really, when you look at it, Darwin is central to that [strategic relationship] for America and to Australia when it comes to defense relations," he said.