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Parliament Must Fix GlobalCo’s Constitution

Monday 18th Jun 2001 Stephen Franks Media Release -- Governance & Constitution

Cunning words deep in the constitution for GlobalCo negate regulatory package protections Agriculture Minister Jim Sutton intended for the dairy industry, says ACT Commerce spokesman Stephen Franks.

He has written to the agriculture spokespersons for all parties warning that the Select Committee may need to restore the intent of the package.

“I won our office sweep on the likely vote in favour (predicting 84%). Now I predict that farmers will be calling on Parliament over the next month or so to cure some serious defects in the proposed structure.”

Mr Franks said needed changes include: * compensating farmers who will lose when the milk price cross-subsidies end, * reducing the risk of Globalco losing both capital and volume efficiency when suppliers exit, * overriding the slippery words in the constitution that make fair value a deceptive term.

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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