Parliament

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

 

Wool industry restructuring timetable approved


Wool industry restructuring timetable approved

The Wool Board Restructuring Bill will be introduced into Parliament by the end of November, Agriculture Minister Jim Sutton said today.

Mr Sutton said that Cabinet ministers had approved plans to dissolve the Wool Board and to put its assets into the hands of growers through a range of industry-good and public-good organisations.

He said a bill would now be drafted, and it would be introduced into Parliament by late November and referred to the Primary Production Select Committee. Submissions on the bill could be called before Christmas, and the Government would aim to pass the bill by early May next year.

Mr Sutton said that the wool industry had been in a state of considerable flux and uncertainty for several years now.

"I hope that this decision will give the industry a direction to work together towards."

He said the wool industry was a significant industry for New Zealand, earning $943 million of export earnings in the year to March this year.

Under the proposal approved by Cabinet, the Wool Board Restructuring Bill will convert the Wool Board into a company (currently called Disestablishment Co, or DisCo) that would take over the assets and liabilities of the board. This company would continue to collect a levy on wool for industry good purposes till 30 June 2004, or till a SheepCo commodity levy comes into force.

SheepCo is a non-profit organization set up last year to fund research and development.

The assets of the board will be allocated to woolgrowers who farm more than 250 sheep as shares in Wool Equities Ltd and Merino Grower Investments Ltd, based on sheep numbers farmed.

Shares will be allocated on whether growers have merino sheep (MGIL shares) or other sheep breeds (WEL shares).

Trading in those companies will be restricted for two years, and no grower will be able to hold more than 5 per cent of total shares.

The Wool Board will provide a restructuring plan to Mr Sutton for approval, which will include a share allocation plan and the constitutions of both proposed companies.

Mr Sutton said there were taxation issues around the wool industry's restructuring proposals, and these would be worked out between himself and Finance Minister Michael Cullen using other producer board reforms as precedent.

He said the wool industry restructuring met the Government's criteria for producer board reform, as it was supported by the majority of industry participants, it was fair to minority interests, and it was in the national interest.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election