Morrison OK with foreign investment law

Treasurer Scott Morrison has ruled out tightening foreign investment laws after he moved to block two Chinese bidders from leasing NSW's Ausgrid electricity network.

The treasurer believes his power to block a foreign investment application not consistent with the national interest is sufficient despite the law not specifically accounting for security and technological developments. He says prescriptive regulations could weaken the minister's power.

"I am not overly confident that a legislative arrangement, different to the one we have now which is more prescriptive, would protect Australia's national interest better," he told reporters in Melbourne on Wednesday.