Andrew Murray (WA, Australian Democrats) Share this | Link to this | Hansard source

My question without notice is to the Leader of the Government in the Senate, the honourable Senator Nick Minchin. Senator Minchin, in your capacity as the Minister for Finance and the Minister representing the Prime Minister, do you agree that the result of both the Volcker report and the Cole report is that there is now a potential for AWB itself and its officers and directors to be subject to criminal and/or civil legal action, including class actions? Do you accept that, in the event that that occurred, there would be a danger that the assets of AWB and related entities could be subject to contingent risk? Is it wise for the government to continue in law to force wheat exporters to sell their product through a monopoly that may be the subject of such legal action? Does that not lay the government open to future claims for compensation if farmers are either not paid or only part-paid for their crop, are paid below the free world market price or are unable to export their crop?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

With respect to the question of possible prosecutions, can I confirm that Commissioner Cole recommended the referral of possible breaches of the law identified in his findings to the appropriate authority for consideration of whether proceedings should be commenced. He recommended the establishment of a joint task force comprising the AFP, Victoria Police and ASIC to consider possible prosecutions in consultation with the Commonwealth DPP and the Victorian DPP. He recommended that administrative responsibility for the conduct of the task force should reside with the Commonwealth Attorney-General.

As recommended and as has been announced, the Commonwealth will establish such a task force to consider possible prosecutions in consultation with the DPP. The Prime Minister is writing to the Victorian Premier to invite the participation of the Victoria Police and the Victorian Director of Public Prosecutions in this process. It is our intention to introduce legislation and seek its passage in this sitting fortnight to facilitate access by the task force to the documents held by the Cole commission. Of course, we are not going to pre-empt the work of the enforcement and investigative agencies by talking about the substance of the matters being referred and in particular by summarising or paraphrasing the report, which may be misleading and may give rise to legal proceedings. So we have adopted the recommendations from Cole with respect to the investigation of possible prosecutions of individuals associated with the oil for food scandal as it is.

The separate question which the senator asks is in relation to the issue of whether the company, AWB, should in the light of all this retain its legislated monopoly over wheat exports. As Senator Murray knows, the Prime Minister has said quite clearly that, as a result of the Cole commission of inquiry, the status quo cannot any longer pertain and that the government will take to the coalition joint party room next Tuesday the government’s proposed approach to the way forward with respect to the marketing of Australia’s wheat and will announce the outcome of its deliberations in due course.

Andrew Murray (WA, Australian Democrats) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I thank the minister for his answer as far as it goes, but the issue I raise is really: is the government prepared to pay compensation, stand as guarantor or offer an indemnity, all at taxpayer cost, to possible claims of compensation? If it is not, the obvious consequence—surely the minister would accept—is that, on the precautionary principle, it would be more sensible to take the veto power from the AWB because it is in a classic conflict-of-interest situation and because it is under threat of material legal action. If the government cannot produce legislation in the short term to do that, at least give the power of veto to the Treasurer. My question arising from that is: isn’t it better in the short and medium term that the Treasurer exercise final approval power for wheat export licences in the national interest on a case by case basis, particularly to assist my Western Australian wheat growers who need to move their crop and are unable to do so at present—

Paul Calvert (President) Share this | Link to this | Hansard source

Senator, this is a very long supplementary question.

Andrew Murray (WA, Australian Democrats) Share this | Link to this | Hansard source

My question is: do you accept the immediacy of this problem and will you do something about it now?

Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Link to this | Hansard source

The government is of course reminded not only by Senator Murray but also by other members of the coalition from Western Australia of the importance of the Western Australian wheat growers, and it is a matter of which we are very conscious. That is why, effectively within a week of the tabling of the Cole commission of inquiry report, the government will be taking to the coalition joint party room the proposed approach to the way forward with regard to wheat marketing, taking account of the very strong claims of Western Australian wheat farmers in respect of their particular position.