Disgraced Australian wheat exporter AWB’s grip on wheat exports will be loosened under a new plan to overhaul the companies marketing monopoly.
Source:
AAP
5 Apr 2006 - 12:00 AM  UPDATED 24 Feb 2015 - 12:14 PM

Revealed at a major grains conference in Canberra, the model, in a discussion paper, would strip AWB of its veto power over bulk exports by other companies and gradually increase the capacity of competitors to ship wheat to international markets.

The wheat exporter is under investigation from the Cole Commission which is examining claims AWB propped up Iraqi dictator Saddam Hussein’s regime with $300 million in kickbacks – undermining UN sanctions.

The new marketing plan was prepared by consultants Marshall
Place Associates (MPA) on behalf of the grower body, the Grains Council of Australia (GCA).

It comes as the federal government prepares to consider changes to Australia's wheat export system.

GCA chairman Murray Jones said the Cole inquiry should be seen as an opportunity for positive change.

"We have an opportunity to make changes to the wheat export system that will increase the transparency and accountability - something that some say is lacking at the moment,” he told the conference.

The plan

The plan would see the federal government’s Wheat Marketing Act amended to place ownership of the single desk in the hands of growers and set up a new system of primary and secondary export licences.

Although AWB would remain the primary licence holder, its status would be reviewed after three years.

Tonnage under secondary export licences would increase over the next four years to a maximum of 2.5 million tones, that’s five times the current level.

The industry regulator, the Wheat Export Authority, would also be replaced with a producer-owned company called Australian Wheat Associates.

Mr Jones said MPA's discussion paper was the beginning of the consultation process for changes to the export system.

The federal government has said it would not consider changes to the export monopoly before Commissioner Terence Cole delivers the report from his inquiry, due by the end of June.

The Howard government is also resisting international pressure, from the United States and the European Union, to scrap the wheat export monopoly, saying it would not give up the single desk without major concessions on market access and farm subsidies in return.