Senate debates

Thursday, 7 December 2006

Wheat Marketing Amendment Bill 2006

Second Reading

11:56 am

Photo of Julian McGauranJulian McGauran (Victoria, National Party) Share this | Hansard source

The Wheat Marketing Amendment Bill 2006 will bring the most significant change to the wheat industry and its selling arrangements since the deregulation of the domestic market back in 1989—legislation which I also spoke to at that time. The purpose of this bill is to amend the act through the transfer, on a temporary basis, of the right to veto bulk wheat export applications from AWB International to the Minister for Agriculture, Fisheries and Forestry. The transfer will be effective until 30 June 2007. This is achieved through including a new part in the act.

These changes do not amend the functions or objectives of the Wheat Export Authority or AWB International’s authority to engage in export activities. The WEA will continue to control the export of bulk wheat, but now requires the agreement of the minister for each application. The changes mean that the WEA will not be required during the period to 30 June 2007 to have written approval from AWB International before making a decision on bulk export applications. In cases where the minister does not agree with the WEA, he is able to direct it to approve or reject the export applications. As the minister’s second reading speech says:

The movement of the veto does not represent a change to the Australian Government’s single desk policy.

As he said:

These temporary arrangements are also intended to address the uncertainty caused by the ongoing debate and consideration of the long term wheat marketing arrangements in light of the Cole Inquiry.

I come to this debate as a single desk purist, a long-time supporter and defender on all grounds—economic, social and political. So, to a purist, the taking away of the veto from AWB International—or the Wheat Board, as we traditionalists would call it—is very hard to accept indeed. In March 2004, when I last addressed the matter of wheat, I said:

… the bottom line is that only within the industry can the single desk be undermined. That is a timely reminder to farmers not to flirt in any way with changes at the edges of the single desk. Do not chip away at this Rock of Gibraltar, for any change no matter how slight or how seductive will bring down the single desk.

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