| ||Update on new governance arrangements for AWB International|| ||
The Chairman of AWB International (AWBI), Mr Ian Donges, has announced that key industry good functions and dedicated staff will be transferred to AWBI as part of the improved governance arrangements foreshadowed in July.
“Ms Sarah Scales has been appointed acting General Manager of AWBI and just over 40 AWB Limited employees have been given employment offers to move to the new organisation,” Mr Donges said.
“Dedicated compliance and financial and contract management employees to support separate AWBI Board committees will enhance the transparency of corporate governance and contracting arrangements. The adoption of an industry good model that includes industry research, wheat product development and testing functions will also benefit the industry and ensure that the Single Desk continues to promote the ongoing development of the Australian wheat industry.”
The AWBI industry good functions include compliance, stakeholder relations and communications, financial and contract management and industry development and technical services, including testing carried out through the Agrifood facility at Werribee. The industry good model builds on the recommendations of the Williams Review of the Wheat Marketing Act. To support these new functions, 45 positions have been created within AWBI. A copy of the new AWBI structure is attached.
As part of the restructure, AWBI will commence the negotiation of a new Services Agreement with AWB Limited covering the operation and management of the National Pool.
“These negotiations will continue throughout October and we expect to publicly announce details of the new services agreement by early November,” Mr Donges said. “The new services agreement, which will be back-dated to 1 October, will cover pool services and remuneration arrangements between AWBI and AWB Limited. The AWBI Board will ensure that ongoing costs associated with the management of the Single Desk are appropriate.”
AWB Limited has agreed to fund one-off implementation costs associated with the restructure up to $2.3 million. As such, these costs will not be borne by pool participants.