Media release

The Deputy Prime Minister and Minister for Trade, Tim Fischer

12 November, 1998

Strong Commitment To Australian Wheat Industry Continues
4 million tonnes plus credit insurance cover
4 month rollover approved for Korea and Indonesia

Deputy Prime Minister and Minister for Trade, Mr Tim Fischer, today announced that the Government has agreed to provide additional export credit insurance cover for exports of around 4 million tonnes of Australian wheat under EFIC's National Interest Account.

"This decision clearly demonstrates the Government's commitment to the Australian wheat industry and will ensure that AWB Limited has the marketing tools at its disposal to build on the successes of 1997-98", Mr Fischer said.

"This insurance is not a Government gift or subsidy to Australian growers. National Interest cover is offered to Australian growers on commercial terms and conditions and includes the payment of a premium - just like any other commercial insurance cover."

Mr Fischer said "I salute the performance of wheat exporters who have risen to the challenge despite the difficult trading circumstances as a result of the East Asian economic crisis. The Australian wheat industry has managed to maintain, and in some cases increase its share of markets in the region," Mr Fischer said.

"Australia is facing a potential record wheat crop this year, and the Government through its decision to provide continued access for the wheat industry to credit insurance facilities, is showing a strong commitment to Australian exports and jobs."

Mr Fischer also announced that the Government has approved an extra 4 months short-term credit insurance cover to support Australian exports to Korea and Indonesia for a further four months.

"In the case of Korea, this will involve maintenance of the current level of up to A$500 million of cover. The Indonesian arrangement will continue to provide for case-by-case consideration of requests for cover."

Mr Fischer said that the continuation of short-term credit insurance will assist Australian exporters in their efforts to maintain trade with Asia in these difficult times.

"Already, exporters of wheat, cotton, sugar, coal iron ore, aluminium, wool, forest products and various manufactured goods have benefited from these National Interest credit insurance arrangements", Mr Fischer said.

Australian exporters interested in obtaining further information on export credit insurance should contact EFIC on (02) 92015209, or facsimile (02) 9201 2289

Local Date: Thursday, 08-Jan-2009 01:10:48 EST