Rt Hon Winston Peters

New Zealand First Leader

Member of Parliament for Northland
14 APRIL 2016

Fonterra Must Return to 30-Day Payments Now

Financial pressures are now becoming so demanding on Fonterra suppliers and contractors, the dairy company giant must return immediately to its standard payment terms of 30 days, says New Zealand First.

“We’re getting reports of real pain and the risk of businesses going to the wall has worsened,” says New Zealand First Leader and Northland Member of Parliament, Rt Hon Winston Peters.

“While Fonterra continues to pay its top 19 managers fat salaries – over $31 million in total annually between them – and has reported a half yearly after taxes profit of $409 million, it is totally unethical that suppliers and contractors have to wait 90 days to be paid.

“These people now have major cash flow difficulties and with every passing day, their financial difficulties are deepening.

“How would Fonterra’s management feel if they had to wait to be paid what they are rightfully owed?

“Fonterra needs to show some moral decency and pay their bills in a reasonable time – in 30 days not 90 days,” Mr Peters says.

ENDS

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