House debates

Thursday, 9 February 2006

Questions without Notice

Oil for Food Program

2:32 pm

Photo of Gavan O'ConnorGavan O'Connor (Corio, Australian Labor Party, Shadow Minister for Agriculture and Fisheries) Share this | | Hansard source

My question is to the Minister for Agriculture, Fisheries and Forestry. I refer the minister to statements released yesterday by the Chair of the Wheat Export Authority, Mr Tim Besley, that in mid-2004 the Wheat Export Authority became aware that AWB was supplying wheat to Iraq under an arrangement that included overland transport by a Jordanian trucking company at inflated contract prices well above the global benchmark and that, as a result of that information, the WEA undertook an investigation of these arrangements. Given this investigation by the WEA, why did the minister tell the House on 9 November last year:

The WEA has had no material which suggested additional scrutiny was warranted.

Why did the minister mislead the House?

Photo of Peter McGauranPeter McGauran (Gippsland, National Party, Deputy Leader of the House) Share this | | Hansard source

I thank the honourable member for his question. At the outset, let me say that I have not misled the House. The Wheat Export Authority, on the basis of newspaper reports, initiated their own inquiries of AWBI in February 2004. Over a period of time they sought information and examined documents and then in August 2004 attended the offices of AWBI and looked at 17 specific contracts between AWB and Iraq. They were acting under their legislative responsibilities. When they heard of the kickback rumours—no evidence was presented—they initiated their own inquiries. They were clearly and repeatedly told by AWB that there were no improprieties in regard to the contracts that the WEA investigated. From the information provided to the WEA, and to their best abilities, they found, to quote their chairman, ‘Nothing untoward’. The WEA has provided all relevant papers and correspondence on these issues to the Cole inquiry, and I suggest that we allow the inquiry to do its job.