MINISTER for Agriculture Joe Ludwig has said Wheat Exports Australia will be phased out on September 30 next year.
The announcement comes in light of the Productivity Commission’s report into wheat marketing, which advocated further deregulation of the industry.
The PC wanted WEA and the wheat access charge abolished this year, however the government has decided on another transitory year.
The port access test, required for dual port operators and marketers, will remain until October 2014
WEA was set up as a replacement for the former Wheat Export Authority in mid 2008, when Australia abolished its single desk what exports system, to administer the accreditation of new bulk wheat exporters.
Australia now has 26 accredited what export companies since AWB’s monopoly ended.
Mr Ludwig said the first stage will see the application of a ‘lighter–touch’ accreditation scheme under current legislation from 1 October this year.
“This will reduce the level of administrative red tape for exporters, including accredited port terminal operators, and allow growers more time to adapt to the new environment,” he said.
However, his decision does not have the support of many growers.
VFF grains group president Andrew Weidemann said his organisation believed there was still a role for a monitoring agency for the grains industry.
He did not rule out an altered role for WEA.
“Perhaps there could be a change of focus, and WEA could look at filling the gaps in terms of stocks and crop reporting.
“It’s clear that the Australian Bureau of Statistics and ABARES reports are not meeting the needs, there is too much of a time lag and the information has no real value by the time it is released.”
The opposition also took aim at the announcement.
Shadow Minister for Agriculture and Food Security, John Cobb said he did not think the decision was good for growers.
“I am suspicious of Minister Ludwig’s announcement given that on the same day he also announced the scrapping of the Wheat Export Authority which will benefit the exporters”, Mr Cobb said.
“Exporters may grumble at the cost of around 22 cents a tonne however the reputation of our export dependent market is paramount.
“The independent statutory body WEA has the power to grant, suspend, cancel or vary bulk wheat export accreditations and this gives grower’s confidence in international markets and maintains the integrity of our export marketing arrangements.
From October 1, 2014, the wheat market will be fully deregulated and access issues will be governed by a code of conduct and general competition law administered by the ACCC.