this company is doomed

AWB breaching the law, says Labor
By Peter Veness | September 13, 2007

A FRESH ruckus is erupting around AWB as the disgraced company prepares to handle one last wheat pool.

Labor and farm groups are outraged by an apparent attempt to insert extra costs into the 2007-08 wheat pool.

Opposition primary industries spokesman Kerry O'Brien says the costs of winding up AWB International along with costs from previous seasons are being included in the up-coming pool.

"I have received legal advice which raises serious concerns about AWB's conduct in relation to this final pool," Senator O'Brien told the Senate.

"The 2007-08 pool in particular, alleging that it is contravening the Wheat Marketing Act by providing for costs for previous pools and the winding up of AWB International to be incorporated into this final pool."

The Victorian Farmers' Federation (VFF) declared the manoeuvre a desperate final attempt to gouge farmers.

"Once again, AWB have not consulted with farming organisations nor taken growers into consideration when determining the pool services agreement.

"Leopards don't change their spots, AWB are still clearly focused on maximising shareholder profits at the expense of growers," VFF grains group president Geoff Nalder said.

If the accusations are correct then the VFF and Labor assert AWB is in contravention of Section 84 of the Wheat Marketing Act.

AWB defended the extra costs as a necessary part of closing down.

"Because this is our last national pool there is pool finalisation costs," spokesman Peter McBride said.

"We are trying to reduce it."

The costs are mainly associated with redundancies and asset write-offs.

AWB was stripped of its monopoly on export wheat after it was found to have paid about $300 million to the regime of former Iraq dictator Saddam Hussein.