Export Wheat Commission

The Export Wheat Commission (EWC) is an Australian government organisation.

Export Wheat Commission

The EWC was established on 1 October 2007 and supersedes the former Wheat Export Authority (WEA). The WEA changed from an agency under the Commonwealth Authorities and Corporations Act 1997 to a statutory commission operating under the Financial Management and Accountability Act 1997. The EWC’s role is determined by the Wheat Marketing Act 1989 (the Act) and its operations have been funded from three sources, a $50 application fee for export consents, a Wheat Export Charge of $0.22/tonne of exported wheat and government grants of $3 million to supplement the downturn in income due to the drought affected wheat harvest in 2006-07.

The EWC facilitates the operations of Australia’s legislated wheat export arrangements and informs Government and growers of outcomes. The EWC:

• controls the export of bulk wheat from Australia;
• monitors the single desk's performance (currently AWB International) in relation to the export of wheat and examines and reports on the benefits to wheatgrowers that result from that performance;
• monitors compliance with the conditions of export consents issued;
• administers the Non-bulk Wheat Quality Assurance Scheme; and
• manages operations efficiently and effectively, consistent with corporate governance principles, and informs stakeholders of its activities.

The EWC assumes responsibility for the former role of the WEA) to monitor and report on Australia's single desk wheat export arrangements, under which AWB(International) Ltd (AWB(I)) was given a near monopoly on exporting wheat, in particular bulk exports. The 2006-07 National Pool is the last one to be managed by AWBI. A new holder of the single desk, to take effect from 1 March 2008, has yet to be determined. The Australian Government reserves the right to decide on new wheat export arrangements if a suitable alternative holder of the single desk is not decided from 1 March 2008.

Wheat Export Authority

The WEA was established 1 July 1999 as part of restructuring the former government-owned Australian Wheat Board in preparation to privatise AWB Limited. It was felt that a number of the tasks carried out by the previous Australian Wheat Board would not be appropriate for a privately owned body; thus, the WEA was established. The WEA's role was determined by the Wheat Marketing Act 1989 and its operations were funded by a charge on Australian wheat exports.

The WEA was controlled by a five-member board of directors, appointed for a period of up to three years by the Minister for Agriculture, Fisheries and Forestry. They were supported by an 16-person Canberra-based Secretariat, headed by a Chief Executive Officer.

The WEA had two major functions, including monitoring and reporting to the government and growers on AWB(I)'s performance in managing the National [wheat] Pool. This was done through a commercial-in-confidence report to the Minister and a public report, known as the Growers Report.

Through its second function, the WEA also considered export applications from parties other than AWB(I) [known as non-AWB(I) exporters] to export wheat from Australia, usually in bags and containers. Since 17 August 2007, the export of wheat in bags and containers has been deregulated. Non-AWB(I) exports, are permitted in limited volumes to protect the integrity of the National Pool and make up about 4% of total exports.

In December 2006 the Government amended the Act transferring the power of veto over bulk exports from AWB(I) to the Minister, on a temporary basis until 30 June 2007. This has since been extended to the end of June 2008. The Government then established a Wheat Export Marketing Consultation Committee which consulted with wheat growers across Australia and presented its finding to the government on 29 March 2007. The government is using this report as the basis for its consideration of new wheat export marketing arrangements.

AWB Iraqi kickbacks scandal

In the course of the Cole inquiry into allegations that AWB paid kickbacks to Saddam Hussein's regime in Iraq for wheat shipments under the United Nations Oil-for-Food Program, it was revealed that the WEA board, upon hearing of the allegations through media sources, asked AWB(I) to show them Iraq wheat sales contracts. The WEA had limited powers and resources, far below those of the Cole Inquiry, and its examination of material provided to it by AWB at that time failed to reveal information of concern. During the Inquiry the Grain Board of Iraq ceased to deal with AWB. This resulted in the establishment of the Wheat Australia consortium to export wheat to Iraq in 2006, with special approval from the WEA and Australian Government. The temporary wheat export arrangements allow other exporters to apply for consents to export in bulk. However, of 77 applications received by the WEA since December 2006, just two had been approved by the end of March 2007.