LIC must be returned to Users

6 March 2001

PR 34/2001

LIC must be returned to Users

Federated Farmers of New Zealand, Sharemilker Leader, Conall Buchanan, to-day joined Livestock Improvement's (LIC) National Council Chairman, Kevin Straight, in his warning that LIC must not be lumped into the New Zealand Dairy Board's 'transfer package' to Global Dairy Company.

Federated Farmers Sharemilkers' Section Chairman, Mr Buchanan, said; "Livestock Improvement must be returned back to the farmer users who over many years have contributed to the growth of the Corporation."

This includes thousands of sharemilkers who have traditionally been heavy users of Livestock Improvement services.

"Should this not occur, sharemilkers will end up with absurd situations such as where those on large conversions, who spend many thousands of dollars on Livestock Improvement services, will have no entitlement to shares, ownership or governance. Meanwhile, the investors in the conversion, who contribute nothing to Livestock Improvement, will end up with shareholdings."

"During Merge Co discussions, consultation with farmer users revealed that they strongly supported the return of Livestock Improvement to the farmer users.

Despite such overwhelming support for this, the wishes of these farmers may be overlooked.

My fear is that, with the rush to meet the June deadline, Livestock Improvement may be lumped together with other assets being transferred from NZ Dairy Board to Global Co."

"This would mean that those users of Livestock Improvement, who are not Global Co shareholders, would be marginalised - sharemilkers, Westland and Tatua shareholders included."

'This is simply not acceptable' concluded Mr Buchanan.

ENDS....

For further information: Conall Buchanan, Home (07) 867 7880, Mobile (025) 333 674.

© Scoop Media