Friday, December 15, 2006

Babies and Bathwater: the difference explained.

The Federal government has assumed responsibility for the sales of Aussie wheat for the next six months whilst it considers its position on the single desk policy wherein one agency, most recently AWB Ltd, has sole rights to trade in wheat for export.
Of course we now know what the government says it didn't know (but should have). ie that AWB was paying kickbacks to purchasers, in particular Saddam Hussein, in contravention of UN sanctions on pre-invasion Iraq.
This was disgraceful, immoral and more than likely illegal but does it mean that the single desk policy is fundamentally flawed? The farmers love it. They see it as ensuring that they have the strength in the marketplace to compete with the big boys, Canada and the US.
The single desk concept is not so different to the way trade unions negotiate favourable wages and conditions outcomes for their members. Or did pre-Work Choices.
By not allowing wheat buyers to pick off the weakest or most desperate farmers first and so set an inadequately low floor price, the single desk policy ensures that Aussie farmers get the best returns for their labours.
For the next six months we are to have the Minister behind a single desk acting as a kind of government appointed farmer's union leader but at the same time the same government is busy telling us that trade unions are passe and that workers will achieve better wage outcomes under its deregulated Work Choices system.
Let's keep the single desk and the union movement and toss out AWB and Work Choices. And the current Federal Government.

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