THE Western Australian Government has weighed into the debate over Indonesia flour millers possibly slashing their Australian wheat orders.
THE Western Australian Government has weighed into the debate over Indonesia flour millers possibly slashing their Australian wheat orders.
Following a meeting with the WAFarmers and a representative from the Indonesian flour industry, WA Agricultural Minister Kim Chance said he was “deeply concerned” about the Federal Government’s stance on the issue.
Mr Chance said he would be writing to Federal Trade Minister Mark Vaile to express his concern this week and would try to meet with the head of Indonesia’s largest flour mill, Bogasari.
It was revealed, two weeks ago that Bogasari is threatening to slash its Australian wheat orders because of the Australian Government’s support of low-priced Australian flour exports into Indonesia.
Australia’s wheat trade with Indonesia is valued at about $500 million and Bogasari Flour Mills is the largest private buyer of Australian wheat – most of which comes from WA.
Bogasari’s Piet Yap alleged that Australian flour miller Manildra was dumping flour in Indonesia, hurting the local flour industry, and called on the Federal Government to act.
Last week it was revealed that Bogasari was already in discussions with Indian and Europen wheat exporters.
Mr Chance described the situation as out of proportion and said the Federal Government’s treatment of Bogasari had been disrespectful and dismissive.
“Trade with one of WA’s largest wheat buyers is being put at risk for a minuscule amount of flour trade we do with Indonesia,” he said.
Mr Chance said he had noted the Indonesians were concerned about the relationship between Manildra and the Federal Government.
Early last month it was revealed that Manildra doubled its donations to the Liberal Party to about $300,000 in 2003, reportedly when many companies were donating less.
While Mr Chance did not question the relationship between Manildra and the Federal Government he said the Government’s intervention had been “suprisingly rigorous”.
“I don’t know of any other company that receives that level of support by the Australian Government and the Department of Foreign Affairs and Trade,” he said.
Mr Chance said correspondence he had seen from the Federal Government to Bogasari appeared disrespectful and dismissive.
