gca no longer awb lap dog it seems

Farmers plan to break monopoly
Steve Lewis, Chief political correspondent
February 22, 2006
AWB would lose its monopoly over wheat exports and a grower-controlled regulator would be created to replace the Wheat Export Authority under radical reforms being pushed by Australia's peak grains body.

In a controversial plan to revamp the $4 billion wheat export market, obtained by The Australian, the Grains Council of Australia urges the creation of a new system of "multiple sellers".

It has warned that AWB's tarnished reputation as a result of the escalating Iraqi kickbacks scandal could affect the nation's entire wheat export market of 15million tonnes a year.

The industry reform model, which has been submitted to the Howard Government, reveals the grains council has dropped its traditional support for AWB as the sole seller of wheat to overseas buyers. And the proposal comes at a testing time for the Government, with some Liberal MPs seeking to dismantle the single desk arrangement that gives AWB effective monopoly rights over wheat exports.

Nationals leader Mark Vaile will today seek to assuage grower concerns over the future of the single desk when he addresses a large rally in rural Victoria.

Under the GCA plan, AWB would become one of four sellers of Australian wheat, along with West Australian-based Co-operative Bulk Handling, ABB (the former Australian Barley Board) and GrainCorp.

These companies - dubbed the "four sisters" - would become primary licenceholders and take charge of selling Australian wheat to the world.

In an important shift, the GCA concedes the kickbacks scandal and the loss of lucrative wheat contracts to Iraq "have highlighted the major strategic weakness with a single seller". "If the reputation of the seller fails, all 15 million tonnes of export wheat sales are impacted," the GCA says in its draft plan.

The peak body has also called for the government-run Wheat Export Authority to be replaced by a grower-owned and controlled regulator known as Australian Wheat Marketing Limited.

Shifting from the government regulator to self-regulation "will be more relevant and flexible (and) more responsive to changing industry conditions", the council argues.

It would also "insulate government from policy conflicts".

Last week the Cole inquiry heard that market briefings - which detailed how payments to trucking company Alia were passed on to the Iraqi regime - were compiled by AWB for the WEA as long ago as 2001.

Agriculture Minister Peter McGauran defended the regulator, saying the WEA had done its job as a watchdog as best it could.

The Australian understands that GCA chief operating officer David Ginns has been canvassing the reform model with key industry stakeholders and government figures during the past week. Yesterday he refused to comment.

It is understood the council, which has been a very close ally of AWB, is refining its reform plan.