Transcript

ELEANOR HALL: The Federal Government has at least for now ended AWB's monopoly on Australia's bulk wheat exports, granting permits to two new suppliers. AWB has held a monopoly over wheat exports for decades.

The National Party has been urging the Prime Minister not to dismantle the single desk in the wake of the Cole kickbacks inquiry, arguing that Australian Growers will be unable to compete against larger exporters like the United States.

Western Australian farmers, though, have been particularly vocal in their opposition to AWB and have been urging the Government to open up the wheat exporting market.

Emily Bourke joins us now.

So Emily, what has the Minister announced?

EMILY BOURKE: Hello Eleanor, yes, the Australian Minister for Agriculture, Peter McGauran has announced that today he's granted two bulk wheat export permits.

He says that importantly, growers who deliver to the national pool will not be affected. The current estimated pool returns will not be reduced as a result of the decision. So, for example, the estimated pool returns of $242 per tonne will remain the same.

He's directed the wheat export authority to issue a permit for the export of two separate shipments. One is for 300,000 tonnes of wheat to Iraq by Wheat Australia and a permit of 500,000 to Indonesia by CBH.

That first shipment of 300,000 tonnes is to go to Iraq, which he made the point of saying that was a very valued market for wheat growers.

He said he'd made his decision based on 46 applications and he decided that the two applications that he has agreed to will… were in the public interest.

ELEANOR HALL: Has he said anything about how he thinks the National Party might respond to this?

EMILY BOURKE: No, he hasn't at this stage. He did talk about the Western Australian growers that you mentioned a moment ago.

CBH is the company that will be exporting one of those shipments, with the grower owned and operated cooperative from WA and he talks about the grower prices being at a premium and that he will be able to supply Australian wheat to mills in Indonesia.

ELEANOR HALL: Is there any suggestion that the AWB may be able to get its monopoly rights back at some time in the future?

EMILY BOURKE: Well, that's a fine question, Eleanor, as this is only a temporary arrangement. As I understand it'll be some time next year when the Federal Government will make a final, definitive decision on whether AWB will regain its single desk monopoly.

ELEANOR HALL: Emily Bourke at the minister's press conference there, thank you.