Parliament

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

 

Westland & Tatua Farmers In Line For Capital Bonus

ACT Commerce Spokesman Stephen Franks revealed today that the fine print in Fonterra's constitution, and gaps in the Minister's regulatory package, mean that Tatua and Westland farmers get a capital advantage of as much as $3 per kg equivalent from their decision to stay out of Fonterra.

He says that nothing in the 'regulatory package' Bill winding its way through Parliament requires Fonterra to pay an exiting farmer a fair value which is full value. Instead it is to be a carefully calculated notional value per share, which could be as low as 50% of the true enterprise fair value.

"Farmers and others concerned might think it was bound to stick with fair value - silly them. Only a lawyer could see there are no constraints in the 100 or more pages of the Bill on Fonterra lowering the price to exiting farmers.

"Whatever happens, Tatua and Westland will get the true enterprise fair value on withdrawing from the Dairy Board. That is, their full proportion of the normally calculated value of the Board, (including its brands and prospects).

"Theoretically at least the shrewd Westland and Tatua farmers could take the benefit of the true fair value payment then exercise their open entry rights to rejoin Fonterra at the low entry value produced by its deep discount share price formula. Once in of course they couldn't do it again. On the next exit they would get only what other Fonterra farmers would get.

"This seems to be a result of sly drafting in the Minister's deal. The deal allowed Globalco directors to push the line, at meetings all over the country, that the new Board would have the discipline of potential fair value exit. That would restrain Board recklessness with dairy farmers' money in overseas adventures.

"Meanwhile the cunning drafters of the Bill before Parliament weren't even using the term "fair value". The Minister too might claim that he never used those words. The Bill actually includes the fair value parts of the Constitution but it doesn't tie Fonterra to stick with them.

"The Government could easily fix the problem in the regulatory package to make the law mean what people thought it would say. Whether it will do so remains to be seen," Stephen Franks said.

Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On National’s Ongoing Problems With Abortion


Despite Christopher Luxon’s assurances to the contrary, there is no such thing as “settled law” in New Zealand. Apart from the six provisions that are constitutionally entrenched, legislation can always be amended or overturned by a simple majority vote within our single chamber of Parliament. Luxon’s repeated use of the term “settled law” has been particularly tone deaf, given that several of the US Supreme Court justices used that very same term during their confirmation hearings...
More>>



 
 

Government: New Measures To Help Manage COVID-19 As Country Stays At Orange
The Government is taking action to help reduce the spread of COVID-19 in schools and early childhood services, COVID-19 Response Minster Dr Ayesha Verrall and Associate Education Minister Jan Tinetti announced today... More>>

Prime Minister: Remarks At NATO Summit
It is a rare thing to have New Zealand represented at a NATO Summit. While we have worked together in theatres such as Afghanistan, and have been partners for just on a decade, today represents an important moment for our Pacific nation... More>>

Government: Joint Press Release With President Of The Govt Of Spain Pedro Sánchez & PM Of New Zealand
On June 28, 2022, a meeting took place in Madrid between the President of the Government of the Kingdom of Spain, Pedro Sánchez Pérez-Castejón, and the Prime Minister of New Zealand, Jacinda Ardern, who was visiting Spain... More>>



Greens: Alcohol Harm Minimisation Bill Pulled From Biscuit Tin

After years of research and advocacy, Parliament will finally consider legislation to take meaningful action on alcohol harm, says the Greens... More>>


Government: Wellington’s Rapid Transit Option Progresses To Next Stage
The Government is progressing a preferred option for LGWM which will see Wellington’s transport links strengthened with light rail from Wellington Station to Island Bay... More>>


NZ Republic: Charles CHOGM Speech Green Light For Change
“Prince Charles had made it clear in his speech to the Commonwealth Heads of Government Meeting (CHOGM) in Rwanda today that even the Royal family think it’s time for change” said Lewis Holden, campaign chair of New Zealand Republic... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels