Fed: Govt to consider changing wheat export arrangements=2

AAP General News (Australia)
02-14-2006
Fed: Govt to consider changing wheat export arrangements=2

The comments came after Iraq decided to temporarily shut out the AWB from its lucrative market.

The Iraqi Grains Board (IGB) has suspended its relationship with the monopoly wheat
exporter, which is being investigated by the Cole commission of inquiry in Sydney over
allegations it paid $300 million in kickbacks to the regime of Saddam Hussein.

Mr Howard said he thought the inquiry would continue for some time.

"He spoke about the AWB and said that there would be no early finish to this, that
the government had established this inquiry, that (inquiry head) Terence Cole was a very
good lawyer (and) that if he wants an extension of the terms of reference he will ask
for it," the spokesman said.

There have been calls from within government ranks for changes to be made to the way
Australia exports its wheat for some time.

Treasurer Peter Costello has indicated in the past he supports change.

Mr Howard appears now to be considering change, but the spokesman said there was no
indication of when that might occur.

"The prime minister also said that he was concerned if there is any damage done to
the wheat market and that he was looking at things which can be done without pre-empting
the result of the inquiry," he said.

"He mentioned things such as alternative arrangements which can be made for marketing
under existing legislation."

The spokesman said between six and seven coalition members spoke about AWB in this
morning's meeting and that no one spoke in favour of the monopoly system.

The speakers voiced the frustrations of other wheat farmers who wanted to export their
wheat themselves, and two of those speakers criticised the monopoly system.

Deputy Prime Minister Mark Vaile, who does not support changing the single-desk system,
said he thought it was possible the AWB inquiry would continue beyond late March, the
spokesman said.

Australia operates a single-desk system for wheat exports, with AWB having the power
of veto over which companies can export bulk quantities of the grain.

The government is due to review the system by 2010.

The joint parties spokesman said the single desk itself was not mentioned in the meeting today.

Iraq today indicated it could seek wheat from Australian suppliers not connected with
AWB after cancelling a tender with the US.

AAP shh/sb/jm/bwl

KEYWORD: AWB HOWARD 2 CANBERRA

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