Barry Wakelin (Grey, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Prime Minister. Would the Prime Minister inform the House of the government’s proposal in relation to the future marketing and export of Australian wheat?

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Grey both for the question and for his impressive and balanced contribution to what has been a very difficult debate inside the coalition parties. I also want to thank other members of both the coalition parties for their contributions. It has been a difficult debate. This side of politics represents all of the great wheat-growing districts of Australia. This side of politics has the interests of the wheat growers of Australia as a prime concern. This side of politics, in formulating the decision that I am about to announce, has taken carefully into account the opinions expressed by Australian wheat growers.

I can inform the House that growers will be given by the government until 1 March 2008 as the time within which to establish a new entity to manage the single desk completely separate from AWB Ltd. This may be a completely new entity or a demerged AWB International and it will take over management of the single desk. Very strong majority support was expressed during the consultations led by the respected businessman Mr Ralph with Australian wheat growers that they favoured the retention of the single desk. A figure was cited by him of 70 per cent of the people he spoke to, although only a small minority of that 70 per cent favoured the single desk remaining in the hands of AWB. That is a conclusion that the government completely shares and endorses.

Because of the time needed, AWBI will manage and market the 2007-08 wheat harvest but, as a consequence, the Minister for Agriculture, Fisheries and Forestry will, subject to parliament passing the relevant legislation—it will be presented shortly—have his power to direct the Wheat Export Authority to either approve or reject a bulk export application extended until 30 June 2008—that is, the so-called veto power. This will allow time after 1 March next year for the necessary legislation to put in place the new system to come into operation. The veto power in the hands of the minister will continue to be exercised in the public interest and in a way that treats any application for a licence on its merits. The export of wheat in bags and containers will no longer require consent from the Wheat Export Authority. However, the quality of each shipment will need to be certified in order to protect the international reputation of Australian wheat.

If growers are able to establish their own entity by 1 March 2008, legislation will be introduced to confer a single desk status on that entity, and in that event the Wheat Export Authority will be given additional auditing and reporting powers to increase its ability to ensure transparency and compliance with international and domestic law by the single desk operator. The Wheat Export Authority’s increased powers will include the power to issue an export permit to an organisation other than the single desk holder, but only in exceptional circumstances. Those exceptional cases would include where the single desk operator has been precluded from a market for legal reasons—and that occurred in the case of the AWB’s attempted shipment of wheat to Iraq some 18 months ago—where the single desk operator has failed to develop specialty markets, such as closed loop supply chains, and to facilitate the development of a market that the national pool operator has been given the opportunity to develop but has demonstrably failed to do so.

If growers are not able to establish the new entity by 1 March next year, the government will propose other marketing arrangements for wheat exports. Let me make this clear to the House. The options available would include further deregulation of the wheat export market. The government believes that the new arrangements will maximise the returns to growers—

Duncan Kerr (Denison, Australian Labor Party) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. It has been customary in the House for an answer of this complexity and length to be made by nature of a ministerial statement so there can be debate. I would ask that the Prime Minister consider whether the House should be given that courtesy rather than this kind of abuse of question time.

David Hawker (Speaker) Share this | Link to this | Hansard source

I thank the member for Denison for raising the point, but the Prime Minister has been asked a question and the Prime Minister is answering the question.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

It is not a bad point of order from a former Keating government minister! I make the point in reply to the member for Denison that within a matter of a few weeks of when we introduce the legislation to extend the minister’s veto power there will be ample opportunity for the House to fully debate the issue. I want to conclude my answer by saying that the new arrangements will maximise the returns to growers whilst securing our overseas wheat markets against strong international competition. I have often made the comment in the past, and it remains my very strong view, that a retention of the status quo with AWB, given the circumstances revealed in the Cole inquiry, would not have been acceptable to the government, would not have been acceptable to me and would not have been acceptable to the Deputy Prime Minister and Leader of the National Party. Can I also say that, if this country is at some time in the future to move away from a single desk operation, it will need in order to justify that decision to get something decent in return from the corrupted international wheat markets that have worked so heavily against the interests of Australia.