Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Government to study dairy merger proposal

Government to study dairy merger proposal

The Government has welcomed a proposal by Kiwi Dairy and New Zealand Dairy Group companies to restructure the dairy industry, Agriculture Minister Jim Sutton said today.

The companies made public the "mega-merger" proposal this afternoon.

Mr Sutton said the dairy industry was a crucial one for New Zealand. Dairy exports were worth about 25 per cent of all export earnings.

"This proposal will be studied extremely carefully. It is a top priority for the Government."

However, Mr Sutton said there were some complex public policy issues and these could take some time to work through.

"The request from industry and the challenge to Government is to move from laws designed to stop a highly fragmented industry from falling apart, to laws that prevent a monolith from falling to the temptations of monopoly power."

He said that while the Government would give very high priority to the process in the new year, the industry's preferred timetable was very optimistic.

"Indeed, given the number and complexity of the public policy issues raised, it doesn't seem likely to be possible."

Mr Sutton said that, with an industry as important to the future of the New Zealand economy as dairy was, the Government needed to be sure that all issues had been carefully assessed.

This included aspects of competition law.

"This is clearly a major issue for Government in terms of making judgements as to the public interest. We're going to have to decide quite quickly whether that decision should be made by the Commerce Commission, which has been set up to make such decisions, or whether the deal is so unique in New Zealand's commercial history that it should be made by ministers."


ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Tax Working Group’s Road Map

Trying to analyse the interim report on the Tax Working Group (TWG) is like trying to review an entire All Blacks game, but at the half- time mark.

With so much still to be finalised, Sir Michael Cullen and his colleagues are going to need all the All Blacks’ fabled finishing skills to get a coherent, fiscally neutral package together by the February 2019 deadline. More>>

 

Meth Testing Report: Housing NZ "To Right Wrong"

Phil Twyford “Housing NZ acknowledges that around 800 tenants suffered by either losing their tenancies, losing their possessions, being suspended from the public housing waiting list, negative effects on their credit ratings or, in the worst cases, being made homeless.” More>>

ALSO:

No Reshuffle: Meka Whaitiri Removed As A Minister

Meka Whaitiri will be removed as a Minister with immediate effect... The decision was made after receiving a report into an incident that occurred on 27 August in Gisborne, involving Meka Whaitiri and one of her staff. More>>

ALSO:

Pay Equity Bill: Making History For Women’s Pay

The Equal Pay Amendment Bill, introduced to the House today, will make it easier for workers to make a pay equity claim , using a more simple and accessible process within New Zealand’s existing bargaining framework. More>>

ALSO:

Suffrage 125: NZ A Trailblazer For Women

“We acknowledge the work of Kate Sheppard, Meri Te Tai Mangakāhia, and all of the suffragists who tirelessly campaigned for the vote… Today we also need to ask each other: how we can continue to make our country a fairer and better place to continue the legacy of the suffragists.” More>>

ALSO:

Asylum: Refugee Quota Increasing To 1500

“The quota increase will take place from July 2020. In the meantime, we will work to increase the number and spread of refugee resettlement and support services. We need to make sure we’re prepared for this change in policy.” More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels