Nick Sherry (Tasmania, Australian Labor Party, Minister for Superannuation and Corporate Law) Share this | Hansard source

Under the current arrangements there is no guarantee of payment for wheat delivered to the national pool. Grower confidence in being paid under a single desk is based on AWBI’s payment record and credit worthiness. Similarly, under the new system, the best way to ensure payment security is for a grower to exercise commercial judgement on the credit worthiness of a marketeer they choose to deal with. WEA will only accredit exporters who pass a strict probity and performance check. For example, exporters may need to provide in their application evidence of sufficient liquidity to meet the estimated maximum wheat tonnage they intend to export. WEA will also regularly review the financial conditions and activities of accredited exporters to make sure they are complying with the conditions of their accreditation.

While the assessment process is designed to ensure only reputable exporters are accredited, it does not guarantee payment and it remains the grower’s responsibility to perform their own due diligence in choosing exporters. When growers deliver wheat to AWBI they receive an advance from AWBI which is actually a loan. This loan is paid up as AWBI sells the wheat. Not only do they not own the wheat; they have to repay AWBI. The financial exposure of growers to marketeers of wheat that may go broke will be the same as for other agricultural commodities and the same as for AWBI at the present time.