A war of words has erupted between a Western Australian Government grain export licence regulator and the State’s major grain export licence holder Grain Pool over an alleged grain sale in Pakistan.
The allegation of a sale to one of Grain Pool’s customers comes amid debate within the grain industry over a report conducted by RSM Bird Cameron into the efficacy of the Grain Licensing Authority.
Grain Pool general manager Andy Crane has alleged that a GLA special export licence holder was selling 38,000 tonnes of WA canola to one of Grain Pool’s existing customers in Pakistan at a price $2 a tonne lower than Grain Pool was offering.
Dr Crane said the Grain Pool was basing its allegation on market intelligence that indicated a GLA special export licence holder was “negotiating” a sale.
However, he said he did not know the identity of the special licence holder.
Dr Crane’s allegation has been denied by GLA executive officer Allan Johns.
“No licence holder, to the best of our knowledge, has sold any canola to Pakistan as yet,” Mr Johns said.
RSM Bird Cameron recently completed a WA Government-commissioned report into the GLAs operation that found the benefits of the authority outweighed the costs.
The GLA was created by the Grains Marketing Act in 2002 and came into effect in September 2003.
The act also partially deregulated the industry surrounding the export of canola, barley and lupins.
Previously only the Grain Pool had been allowed to sell grain overseas but under the new act the export of containerised and bagged grain was deregulated.
Grain Pool still holds the major export licence for bulk grain, however the act allows the GLA to grant special export licences for bulk grain.
WAFarmers, which is in favour of a single desk grain selling system, has attacked the report, with its president Trevor De Landgrafft calling its outcome “predictable”.
“We can’t see how you can have a dual-purpose system. You either have total regulation or you don’t,” he said.
Meanwhile, the Pastoralists and Graziers Association, which favours free trade, has lauded the report’s findings.