Legal action considered to break AWB export monopoly
Thursday, 12/01/2006
A coalition of grain traders, including Cargill and Brooks Grain, supports the idea of legal action to break AWB's monopoly over wheat exports from Australia.
The Grain Exporters Association says the Wheat Export Authority is failing to carry out its duties by not developing niche markets.
Liberal MP Wilson Tuckey says WA-based Cooperative Bulk Handling (CBH) may have no choice except the Federal Court, after AWB twice vetoed its applications to ship wheat to Indonesia.
Grain Exporters Association Phil Hughes says court action would have a good chance of success.
"The Wheat Export Authority is obliged under the operation of the act to develop niche marketing opportunities and I would very much see this CBH development of delivering wheat to their own flour mills as a niche marketing opportunity so they may well be successful," he said.
AWB Chairman Brendan Stewart says the only previous court case against the management of the single desk ruled in favour of AWB.
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