Legal bid to loosen AWB vetoCath HartMarch 01, 2006THE Wheat...

Legal bid to loosen AWB veto
Cath Hart
March 01, 2006
THE Wheat Export Authority was seeking legal advice last night on how to stop AWB keeping its wheat export monopoly.

The move followed AWB delaying approval of a competitor's application to export wheat to Iraq, where it has been banned.

Brooks Grain, part of global commodities trader Glencore, applied to the WEA for a permit to export 200,000 tonnes of wheat to Iraq almost two weeks ago.

However, it was advised by the WEA the evaluation was "delayed" because AWB had not provided "consultation comments", a mandatory part of the process, a letter obtained by The Australian yesterday reveals.

"The WEA is advised by AWB that there will be a delay in providing written consultation comments in relation to your application," it says.

Brooks Grain declined to comment yesterday but it is understood they were advised by the WEA the delay would be "indefinite".

WEA spokesman Rod Wellington said yesterday the organisation was "exploring a number of options" to resolve the impasse, including legal advice.

"The WEA are continuing to explore options to expedite AWB (International) Ltd's consultation comments on applications seeking consent to export wheat in bulk," he said in a statement.

Mr Wellington said the WEA remained confident that AWB would continue to "provide consultation comments on bulk export applications in a timely manner".

Opposition agriculture spokesman Gavan O'Connor said the WEA must act swiftly to ensure AWB did not hold up the evaluation process.

"It would appear that AWB is simply not going to approve any applications by any competitors to export bulk grain to Iraq," Mr O'Connor said.

"It's vital for Australia to get back into the premium Iraq market and the WEA must use whatever legal power and moral authority it has to ensure that growers' wheat is sold."

AWB spokesman Peter McBride rejected the allegation of a "go slow" yesterday but said assessment of bulk permit applications - which usually take between seven and 14 days - had stopped until Trade Minister Mark Vaile gave a briefing on his Iraq trip.

"We gave the Prime Minister an assurance that if required we would relax the bulk veto but we have to wait until we get feedback from Minister Vaile," Mr McBride said.

John Begg, Australian Grain Exporters Association spokesman, said AWB's slow response to the WEA created a "pseudo veto".

A mercy dash to Iraq by Mr Vaile and Liberal senator Jeannie Ferris has failed to reverse Baghdad's blackban on AWB while the Cole inquiry is sitting but did manage to assure other Australian companies' future in Iraq.

It is unclear whether wheat from the AWB-controlled national pool will be used in the tenders, or if wheat farmers will be able to "buy back" wheat they had promised to the pool or if the pool can be bypassed altogether.

AWB gave the commitment not to use its veto only if Mr Vaile and Senator Ferris were were unable to reverse its blackballing in Iraq.

Details of Australia's dealings in Iraq wheat tenders will not be revealed until Mr Vaile returns but Senator Ferris told The Australian yesterday that current and short-term contracts were not raised during the meeting with Iraqi Deputy Prime Minister Ahmad Chalabi.

"We didn't discuss that. What we talked about, particularly with Dr Chalabi, was the ongoing possibility of Iraq purchasing Australian wheat," Senator Ferris said.