liberal mp tells farmers to sue his government

Liberal MP Wilson Tuckey has accused the Prime Minister of creating a half-pregnant wheat export regime and says farmers should sue the Government over the changes.

Agriculture Minister Peter McGauran announced today that two new companies would be allowed to export wheat, effectively ending AWB's monopoly exporter status.

Wheat Australia will be allowed to export 300,000 tonnes to Iraq and CBH can export 500,000 tonnes to Indonesia, in what Mr McGauran calls a compromise between feuding Nationals and Liberal MPs.

Mr Tuckey wanted export licences granted to all 46 companies that applied.

"You can't be Prime Minister and appoint a minister to make judgments and then endorse them when they're that stupid," he said.

"It is no longer the Prime Minister's option to say this isn't his idea.

"The fact it's driven by the National Party and a few of their neanderthal mates is no excuse for our Government.

"It's an issue that's got to be resolved and it should have been resolved with courage."

Nationals Senator Barnaby Joyce is grateful only two companies were issued export licences but he is still disappointed.

"It brings about a crack in our single desk," he said.

AWB 'victory'

AWB has greeted the decision as confirmation it will remain in control of most Australian wheat exports.

The two exporters who do have licences will have to pay $4 a tonne into the wheat pool.

AWB International chairman Ian Donges says that will help the bottom line.

"I call it a victory from the point of view that we're only talking about two permits that have been accepted," he said.

"But most importantly now, we've got some certainty around where we're going about this particular pool year or this particular crop that's being harvested right now."

He says farmers should now deliver wheat to AWB.

But Commonwealth Securities equities analyst Grant Saligari says the decision is the first step to giving greater access to other participants.

"The single-desk arrangements are still in place," he said.

"There were always exemptions available within the Act to allow other parties to export grain.

"Clearly, this weakens those arrangements but I think we'll have to wait and see, wait for further announcements to see how far the Government is prepared to go."

'Farmers will suffer'

Meanwhile, Western Australian Farmers Federation president Trevor de Landgrafft says local producers who have already delivered wheat to the national pool will suffer as a result of the decision.

"We're disappointed that these licences have been issued this year in such a tight production year," he said.

"There's no doubt that 800,000 tonnes is going to be taken from the only 4 million tonnes that is available to export, so that's going to put cost onto the farms who are delivering into the national pool."

Western Australia's Wheat Growers Association has condemned the decision to allow grain handler Co-operative Bulk Handling to export the grain.

Chairman Bob Ifla says there needs to be a clear separation of roles when handling and exporting wheat.

"We need to take away that conflict of interest that CBH has got between its flour mills and being a bulk handling company as well," he said.

"It just couldn't be much worse than what it is now.

"It's a hell of mess in Western Australia and we need to fix that mess up immediately."

The Government's decision is temporary and the issue will be revisited next year.

Dave R