Opposition takes fire on AWB purchase

SYDNEY (AAP) - The federal coalition has accused the government of abandoning Australia's grain growers by not opposing a takeover bid of AWB's old commodity business.
On Wednesday, the Foreign Investment Review Board (FIRB) gave the all-clear to US company Cargill's purchase of AWB Limited's Commodity Management Business.
It follows similar approval given by the competition watchdog in March.
Nationals senator Fiona Nash said the purchase will see Cargill controlling the majority of Australia's grain operations, with only one other big player, Graincorp.
"It will become the Coles and Woolworths of grain trading, potentially leading to less competition and lower prices," she said in a statement on Wednesday.
"Growers are rightfully concerned this will also lead to foreign dominance in the marketing of Australian grain.
"The treasurer, Wayne Swan, has the authority to stop the sale from happening (but) it appears he is completely clueless."
Senator Nash said Mr Swan should have the final say, and urged him to step in to stop the sale for the good of Australia's grain industry.
But a spokesman from Mr Swan's office said the industry was becoming increasingly competitive and that no single company had the upper hand.
Cargill has also provided a number of undertakings to address competition concerns raised by growers.
He welcomed foreign interest in developing Australia's industries.
"It helps to stimulate jobs and has flow-on effects for small businesses in regional towns and communities," the spokesman said.
National interest tests were rigorously applied in all circumstances, he added.