Treasurer Jim Chalmers’ decision last week to block Cosette Pharmaceuticals’ $672 million takeover of Mayne Pharma was justified on “national interest” grounds.

The explanation suggested the move was necessary to protect Mayne’s manufacturing plant in Adelaide and the 200 jobs it supports.

That account is misleading. Cosette was unlikely to close the plant, given its profitability and stability.

The company’s apparent goal was not to cut jobs but to withdraw from an acquisition it no longer wished to complete. By intervening, the Treasurer has not only given Cosette political cover to walk away but also set a troubling economic precedent.

One that highlights a deeper incoherence at the heart of the Government’s policy agenda. It signals that Canberra is willing to intrude into private

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