August 9, 2006

Grain farmers may sue AWB for lost income
 

Western Australian grain growers may sue wheat exporter AWB for lost income of up to US$200 million.

The Pastoralists and Graziers Association (PGA) spokesman Leon Bradley said the group is looking into the possibility that an AWB incentive scheme may have seen up to US$200 million deducted from income that otherwise would have gone to growers.

Australian farmers have lost the lucrative Iraq wheat market and this has forced them to sell the wheat to lower paying markets, the PGA said.

At least 60 Australian grain growers have expressed an interest in joining a possible lawsuit against AWB to recoup the money, according to the PGA.

AWB chairman Brendan Stewart deplored the move,

Stewart said he has no interest filling the pockets of lawyers any further than what the company already has and wished to address the issue directly with PGA without the need to go to court. AWB is believed to have budgeted at least US$20 million in lawyer fees for the Cole inquiry, an inquiry over the kickbacks it offered to deposed Iraqi president Saddam Hussein.