Grain debt overlooked

AUSTRALIA’S decision to forgive the vast majority of Iraq’s debt has received a mixed reaction.

Australia is owed around $US500 million for exports, predominantly wheat, shipped to Iraq in the late 1980s and early in 1990. Last week, after discussions with the Australian grain growing industry, it was decided to forgive most of the debt. The Western Australian Farmers Federation gave in-principle support to the deal. WAFF said the deal may lead to the eventual recovery of a proportion of the Iraqi wheat debt to individual growers but its main focus was to hold and build market share in Iraq.

Australian Foods Company, however, said the deal was grossly unfair as grain growers were being slugged around $25,000 each.

CEO Pavan Shivnani said it was a political decision by the Government and the cost therefore should be borne by the whole community.

As part of the measures, the Government has also committed, in-principle, to contribute $20 million to help build an integrated grains processing facility in Iraq, subject to its feasibility being proved.