Monday 13^th February 2006

AWB Wheat Scandal: the first clues

Ships full of wheat waiting to unload; with delays, costs and uncomfortable attention building up. We needed a solution and fortunately we had a very capable Minister of Trade.

With the AWB scandal now in full play (after many months of consistent questioning by the federal Labor opposition) the statements by Mark Vaile in relation to this issue read in a very new light indeed:

I can inform the House that over the weekend the Australian Wheat Board and the Iraqi Grains Board reached a successful outcome in the quarantine dispute over Australian wheat exports to Iraq. Members would be aware that there was a dispute over an alleged contamination issue, and a question about the quality of a number of shiploads of wheat en route to Iraq waiting to be unloaded. That issue has been resolved, which is excellent news for the Australian Wheat Board and for Australian wheat farmers and their families.

The outcome that has been achieved with Iraq has certainly vindicated the federal government's faith in the AWB and its ability to successfully manage its commercial dealings with the Iraqi Grains Board.
.- Mark Vaile, Minister for Trade, House of Representatives Hansard, 19^th August 2002

... the Australian government was extremely disappointed when, some months ago, Iraq threatened to penalise Australian wheat farmers and their families because the Australian government reiterated its demand for Iraq to abide by UN resolutions. The way the dispute about quality which had delayed the unloading of several Australian wheat shipments to Iraq was resolved demonstrates the sound commercial relationship between AWB Ltd and the Iraqi grains board. We will continue to work closely with AWB Ltd to help maintain and increase its existing market share in Iraq.
.- Mark Vaile, Minister for Trade, House of Representatives Hansard, 17^th September 2002

Oh, so a little before our wheat was judged to be contaminated, the Iraqi grains board was threatening to "penalise" us and our farmers.

And don't forget the new sales of wheat achieved by the AWB to Jordan and Libya for $25 million during a trade delegation he led to the Middle East. These developments, he said:

vindicate our government's support of the Australian Wheat Board in its efforts to successfully manage those commercial dealings with the Iraqi Grains Board, and in working to open up much needed new markets for the Australian wheat farming community.
.- Mark Vaile, Minister for Trade, House of Representatives Hansard, 19^th August 2002

... were shocked in recent weeks to hear claims of contamination of our most recent shipments.
- Mark Vaile, Minister for Trade, House of Representatives Hansard, 14^th June 2005

This happens on top of our in-principle commitment of $20 million for milling and processing facilities in Iraq and also the $125 million already committed for reconstruction purposes in Iraq as part of our aid program. Our government is determined to continue to do all it can to ensure that Australian wheat growers remain the dominant suppliers of high-quality wheat into the Iraqi market.

End of my rant.

(C)opyright Sylvano Lucchetti.