Fed: AWB scandal could have been avoided, grain exporters say

AAP General News (Australia)
02-15-2006
Fed: AWB scandal could have been avoided, grain exporters say

CANBERRA, Feb 15 AAP - The fallout from the AWB kickbacks scandal could have been avoided
if there had been more than one wheat exporter, the Grain Exporters Association says.

Under current government regulations, Australia has a single desk wheat export system,
meaning AWB holds a monopoly on wheat exports.

AWB has been shut out of bidding for Iraqi wheat contracts until the Cole Inquiry,
investigating whether AWB paid $300 million in kickbacks to the Saddam Hussein's regime
under the corrupt UN oil for food program, hands down its findings.

Grain Exporters Association president Alick Osborne said his organisation warned the
government that wheat farmers could potentially suffer under a single desk when legislation
was being drafted.

"Many years ago we suggested that a situation like this could develop where Australia
would be left with no export outlet to a particular market or even to a wide range of
outlets because of circumstances that were unforseen at the time the legislation was brought
in," Mr Osborne told ABC Radio.

"We were laughed at at the time, but it's very unfortunate to see that some of our
concerns have been realised."

But Victorian farmer Russell Dunlop said the single desk protected farmers from fluctuations
in the global market.

"The single desk is the only ammunition we've got in the export market," he said.

"We are up against farmers from the United States and Europe who are so heavily subsidised
that the single desk and our one access to market is the only avenue we've got to fight
back."

Australian Grains Council president Murray Jones also defended the system.

"Growers see that as an important linchpin for them," he said.

"They are adamant about maintaining grower ownership and control over the wheat marketing system.

"We have had a very good system for the last 50 years and plus our marketing system
must stay in place so we urge the government to continue along that line."

The single desk is under threat amid suggestions Prime Minister John Howard may request
AWB break its monopoly to allow Australian farmers access to the lucrative Iraqi market,
when he meets with executives today.

AAP jcg/jt/jlw/

KEYWORD: AWB GRAIN

2006 AAP Information Services Pty Limited (AAP) or its Licensors.