WA growers 'subsidising' WEA

06 Oct, 2012 02:00 AM

CBH board director and Western Australian grain farmer Wally Newman, Newdegate, says Wheat Exports Australia (WEA) is costing the co-op’s members more than $1 million annually in administration costs and that’s without adding the 22 cents a tonne levy also imposed on WA growers to fund the regulatory watchdog.

“Being the major wheat exporting State, bar none, we incur the majority of costs for running the WEA and it’s providing a hindrance to the industry now, not a single benefit,” he said.

“The WEA is a bureaucratic cost on industry for no net benefit.”

Mr Newman said WA bore the full brunt of the single desk’s administration costs.

He said the single desk provided a floor in the market and was excellent service for east coast growers.

But WA growers were virtually subsidising it to the tune of about $40 to $60 a tonne.

The WEA creates a similar situation, he said, with no beneficial service to the industry but a cost.

“The sooner it’s gone the better off our growers will be,” he said.

Mr Newman agreed with PGA Western Graingrowers chairman John Snooke who said last week that it was now high time to deregulate wheat exports totally and remove all politics and agri-politics from the wheat industry.

“John’s right on the money and it’s a powerful voice when all of the different industry groups come together,” he said.

“Industry leaders like John Snooke and Bob Iffla, who are normally on totally opposite sides of the philosophical or ideological fence, are now 100pc in agreement.

“That’s a powerful message to our political leaders, for them to also represent their constituents and reflect growers’ views in Canberra.”

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Sick of sfos
6/10/2012 7:04:40 AM

Wally is the second most stupid person in WA behind his attack dog Snooke. What about the costs imposed on Wa farmers by an inefficient bulk handler. Colin Tutt said this week that the auction system the way Cbh is running it costing exporters up to $5 million per ship load. Work that out over a whole harvest and I think it would be cheaper to have oversight to stop the Cbh ripoff continuing.
the advocate
6/10/2012 8:02:26 AM

there must be some mistake - the debate in this article is purile and not factual! the wea now does not monitor a single desk, nor does it put a floor in the market! I would also like to remind people that the wea did do a stirling job when the awb was losing its single desk - it saved growers over $100m in break fees which the awb was going to charge.
farmer Joe
7/10/2012 5:26:47 PM

What an absolute load of garbage!
8/10/2012 6:39:35 AM

Ah, spending other people's money. Stopping that is like pushing it uphill with a broom.
8/10/2012 7:00:18 AM

again , I ask the question, where is the evidence of this supposed inequity. $40/60 per tonne? The Wheat export Commission(the prototype of WEA) analysed The last five pools run by AWB, published extensive findings, none of which mentioned any of this stuff. You have to conclude that the people peddling this sort of crap are in fantasy land
11/10/2012 3:43:45 PM

We should send a huge chip over to WA so they can put it on the other shoulder they may end up in balance. These people are so rabid about "their" place in the industry it is scary. Gee when they weren't growing much many years ago who subsidised them the East Coast for 10s of years get over it guys its not all about you.


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