Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Wool Board 1999 Results Unsatisfactory

28 September 1999


Federated Farmers' Meat and Wool Section is disappointed that the Wool Board has again experienced a budget over-run.

In response to the Wool Board's announcement of its 1999 financial results, Federated Farmers claims the reliance by producer boards on levypayer-owned reserves encourages loose financial management and consequent over-expenditure.

The Wool Board needs $11.4m from reserves, after budgeting on a $9.9m shortfall.

"This year's budget over-run of $1.5m is modest compared to last year's blow-out", said Federated Farmers Meat & Wool Section Chairman Chris Lester.

"None the less, this deficit again demonstrates how the Producer Boards can rely on growers' funds to prop up ineffective financial management."

"What would levypayers be saying to the boards, were there not substantial reserves available to mop up after the loose financial management that results in these frequent over-runs."

"Given growers' perceptions about the board's effect on farm gate prices, I doubt growers would be happy to put their hands in their pockets to bail out the Wool Board."

A shortfall in the board's levy income of $3.5m and in investment income of $3.6m accounts for the major discrepancies.

"I acknowledge that the board expends a substantial proportion of its budget in offshore markets and therefore had the fluctuations of a number of currencies to manage. Even so, most growers expect the board to accurately predict budget variations and the consequential effects on its financial results," concluded Mr Lester.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news