Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Westland Shareholders Urged Not To Sell

Media Release 03.07.19

From: Chris Leitch, Leader

Subject: Westland Shareholders Urged Not To Sell

Social Credit is urging farmers attending the Westland Milk shareholders meeting tomorrow to vote against the sale of the company to Chinese government owned Yili.

Yili has access to unlimited sums of money from China's central bank which allows it to make the kind of offer it has for Westland, while West Coast farmers are being hung out to dry by their own government.

Farmers, and the whole dairy industry, should be putting pressure on the government to provide the same sort of support for the industry that Yili is getting from its government.

They need to remind the Labour Party that it was the party that put in place an overdraft facility at the Reserve Bank at a cost of just one percent interest for the Dairy Board, at no cost to taxpayers, back in 1936.

That facility stayed in place until the mid 80's and was a major driver of the strength the industry now has.

The Reserve Bank wouldn't need to borrow the money to provide the overdraft facility because it has the ability to create the necessary funds in exactly the same way as commercial banks do now when they make loans.

A similar facility could be provided on a short term basis for farmers under pressure from the banks over their loans, until the company is back on its feet.

The government's failure to act will see Westland owned by the Chinese government with the profits going offshore instead of staying on the West Coast.

That may well be the outcome for the whole of our dairy industry if Fonterra can't satisfactorily deal with its $7 billion debt mountain.

The legacy of this government could well be that it oversaw the ownership of New Zealand’s dairy industry transferred to Chinese government, while it sat on its hands, when it could easily have retained that ownership in New Zealand.

Ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Primary Sector Council Report: Vision To Unite The Primary Sector Launched

Agriculture Minister Damien O’Connor has welcomed the release of a bold new vision for the country’s vital food and fibre sector. More>>

ALSO:

Crown Accounts: Treasury HYEFU Sees Deficit Then Rising Surpluses

An operating balance before gains and losses deficit of $0.9 billion is forecast in the current year, before returning to a small surplus in 2020/21 which then grows to reach $5.9 billion (1.5% of GDP) in 2023/24. More>>

ALSO:

Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>

ALSO:

Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>

ALSO: