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 Yesterday’s Big Parliamentary Air Kiss To China

In order to obtain support from the two major parties, Act Party deputy leader Brooke Van Velden twice had to soften the language of her parliamentary motion yesterday condemning China’s persecution of the Uighurs. The key word “genocide” was deleted. Evidently, the kind of resolution passed by a conservative government in the UK proved to be far too tough for a centre-left Labour government and a centre-right National opposition to countenance. Yesterday, the two major parties were united in their fear of retribution from China... More>>

 

Government: Fair Pay Agreements To Improve Pay And Conditions For Essential Workers

The Government is delivering on its pre-election commitment to implement Fair Pay Agreements which will improve wages and conditions, as well as help support our economic recovery, Workplace Relations and Safety Minister Michael Wood announced today. More>>

ALSO:

Public Services: Government Sets Pay And Workforce Expectations For The Public Sector

The Government’s Workforce Policy Statement issued today sets out its expectations for pay and employment relations in the Public Sector, the Minister of Finance and Minister for the Public Service say. “New Zealand has had an exceptionally successful ... More>>

ALSO:

Government: Budget 2021 Reprioritises Nearly $1 Billion

Hon Grant Robertson Deputy Prime Minister Minister of Finance The Government’s strong pandemic response and the better than expected economic recovery means not all the money allocated in the COVID-19 Response and Recovery Fund has been spent, ... More>>

ALSO:


PM: Statement On The Speaker And Annual Review Debate

“The serious issue of alleged sexual assault and harassment at Parliament was poorly managed and inappropriately politicised last night. The tone of the debate did not reflect well on Parliament as a whole,” Prime Minister Jacinda Ardern said. ... More>>

Parliament: Mallard Fails To Give Taxpayers A Straight Answer

Trevor Mallard has confirmed he is unfit to be Parliament’s Speaker by failing to answer several important questions relating to the false rape accusation saga that cost taxpayers more than $330,000, Shadow Leader of the House Chris Bishop says. ... More>>

Local Government: Independent Review To Explore Future

Local Government Minister Nanaia Mahuta says an independent review of local government will explore how councils can maintain and improve the wellbeing of New Zealanders in the communities they serve long into the future. More>>

ALSO:

PM Ardern And PM Morrison: Commencement Of Two-Way Quarantine-Free Travel Between Australia And New Zealand

Joint Statement by Prime Ministers Scott Morrison and Jacinda Ardern Commencement of two-way quarantine-free travel between Australia and New Zealand Today, Australia and New Zealand have fulfilled their commitment to establish two-way quarantine free ... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels