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Aussie state forced to accept amendments in its sale of Melbourne port

Xinhua, March 9, 2016 Adjust font size:

The government in the Australian state of Victoria has bowed to a key demand from the Opposition in order to push ahead with its multi-billion-dollar sale of the Port of Melbourne.

The Opposition has been fighting for an amendment to the contract which entitled the new owners to compensation if a new port was built in Melbourne during the life of the proposed 50-year lease.

On Wednesday, Opposition Leader Matthew Guy announced the Andrews government had reduced the length of that provision down to 15 years.

Guy said the new parameters were "far more sensible" and protected the "short term, medium term and long term" interests of the state.

"(We) have spent months ensuring the best deal possible for business, agricultural producers and consumers, both today and future generations," Guy said in statement on Wednesday.

Victoria's Treasurer Tim Pallas said the government needed to make the concession to fast-track the sale, which has been pushed back to the second half of 2016 due to the protracted negotiations.

"We welcome the announcement by the Opposition Leader," Pallas said on Wednesday.

"We promised that a Labor government would lease the Port of Melbourne and use the proceeds to build key infrastructure ... and we are keeping our word and getting on with it."

In February, the Victorian government threatened to sell the Port with or without the support of the Liberal-led Opposition after year-long talks again broke down between the two parties.

The port, Australia's largest shipping container port, was expected to fetch around 4.3 billion U.S. dollars contingent on the 50-year non-compete clause.

But Pallas expects the new 15-year provision will now "substantively devalue the asset."

The port has reportedly attracted interest from multiple overseas buyers, including some Chinese companies.

The legislation will be passed through Victorian parliament later this week, Pallas said. Endit