May 4 2011

Australia's opposition fears wheat body may be scrapped in federal budget

Shadow Agriculture Minister John Cobb worries that the wheat export control body will be a victim of budget cuts, after recommendation from the Productivity Commission that it be abolished beginning September 2011.

Cobb says the WEA is important for the wheat industry. "This is not a question about fairness to exporters. This is about fairness to the Australian wheat industry, which is a much bigger and a much more pertinent one," he said.

Wheat Exports Australia was set up in July 2008 as part of the reform of Australia's wheat export arrangements, which saw the abolishment of the single desk.

According to WEA's annual report from last year, the Federal Government contributed half a million dollars to the body, with US$2.9 million coming from a US$0.22/tonne charge paid by wheat exporters.