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Clayton’s Deregulation Could Backfire On Farmers

Clayton’s Deregulation Could Backfire on Vulnerable Dairy Farmers

Monday 9th Apr 2001 Penny Webster Media Release -- Economy

ACT MP and dairy farmer Penny Webster said that vulnerable dairy farmers and consumers could end up being victims of the Government’s decision to allow GlobalCo to avoid Commerce Commission scrutiny.

“I support the de-regulation of our industry, but this is not a true de-regulation. This is a Clayton’s version that will not protect the interests of farmers or consumers. And that is frightening.

“I am also concerned that dairy industry leaders ignored a report from agribusiness bank RaboBank that the proposal must be fairer to sharemilkers. Sharemilking advocates have been telling them this for months. The fact that Globalco is actually ignoring the advice of a report that it commissioned itself demonstrates the arrogance of our industry leaders.

“We have blindly placed the future of our entire dairy industry into the hands of one small group of people with one set of ideas. These ideas haven’t been independently assessed, and now will bypass the Commerce Commission. If this proposal were sound, it would have breezed through the Government watchdog.

“Dairy industry leaders have pulled the wool over the farmers’ eyes, and now have done the same to the Government.

“These bully-boy tactics are scary. If this is to be how our entire industry is to be run, then I have real fears for the future.

“This merger is so important to the livelihoods of so many. Yet all we can do is wait and hope.

“If the people who run GlobalCo get their strategy wrong, they could mess up the whole industry, which would be disastrous for New Zealand.

“Ideally, the Select Committee hearings will provide all those affected by this merger to have their say, and won’t simply be Government rubberstamping. Unfortunately, I have my doubts.

“I just hope this decision won’t backfire on our entire industry” Penny Webster said.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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