Fed: Howard to ask AWB to give up wheat monopoly

AAP General News (Australia)
02-15-2006
Fed: Howard to ask AWB to give up wheat monopoly

CANBERRA, Feb 15 AAP - Prime Minister John Howard will hold crisis talks with embattled
AWB today and is expected to ask the wheat exporter to give up its monopoly position for
the good of Australian farmers.

Mr Howard has called AWB chairman Brendan Stewart to Canberra for urgent talks on how
to help wheat farmers after Iraq locked the AWB out of its market.

Iraq suspended its dealings with the wheat distributor pending the outcome of the Cole
inquiry into almost $300 million in kickbacks allegedly paid to Saddam Hussein's regime
under the United Nations' corrupt oil-for-food program.

The decision has shut Australian wheat out of the lucrative Iraqi market, including
a current tender worth almost $300 million.

Angry government backbenchers have criticised AWB, with some calling for its monopoly
to be scrapped.

Mr Howard signalled he would canvass a temporary lifting of the monopoly during the meeting.

"Inevitably this issue has raised some debate in the Australian community about the
question of a single desk in relation to the sale of Australian wheat," he said.

"Let me say that it remains the government's policy to support the existing provisions.

There would need to be a very strong national interest case in order to alter that.

"What we are considering now has to be looked at in isolation from the question of
whether that remains an ongoing policy or not."

Under AWB's monopoly, it can veto any bulk wheat exports. That leaves growers effectively
shut out of selling their wheat to Iraq, or to tender for any substantial contracts.

The monopoly can only be broken with AWB's consent.

"Our primary concern is the interests of the Australian wheat growers," Mr Howard said.

AAP so/it/de

KEYWORD: AWB FEDERAL DAYLEAD

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