Labor calls for AWB investigationTuesday, 11 September...

Labor calls for AWB investigation
Tuesday, 11 September 2007

Labor's primary industries spokesman, Kerry O'Brien, has called for an investigation into the proposed operation of the 2007-08 national wheat pool, with special focus on whether hedging costs are to be carried over from last year's pool.

Senator O'Brien said Federal Agriculture Minister, Peter McGauran, must instruct the Export Wheat Commission to investigate the pool for this year's harvest.

"We have had representations from growers and their representatives expressing grave concern that AWB’s recently announced Heads of Agreement for the 2007-08 National Pool Services Agreement does not conform with the Wheat Marketing Act," Senator O'Brien said.

"The new services agreement appears to allow for all of the costs associated with management of previous pools, in addition to the costs of winding up AWB International, to be carried by the 2007-08 National Pool.

"Growers want to know whether the final pool will carry losses associated with last year's hedging activity, and what those losses are likely to be."

Senator O'Brien said if those costs were to be passed on to growers, then growers deserve to know exactly what the costs would be prior to signing contracts to supply the final pool.

"Labor is satisfied that these concerns warrant investigation and growers deserve an answer to these questions," he said.

Senator O’Brien said the government's recent changes to the Wheat Marketing Act provide the Minister with a new power to direct Export Wheat Commission to investigate a matter if it is in the public interest to do so.

"The Minister can direct the Commission to investigate a matter relating to the operation of a pool, the provision of services, or an alleged or suspected contravention of the Wheat Marketing Act," he said.

"If Mr McGauran is serious about protecting grower’s interests, he will immediately direct the Export Wheat Commission to conduct an open investigation."

SOURCE: Rural Press National News Service, Parliament House Bureau, Canberra.