Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Update on injunction to stop Westland Milk takeover

Media Release 31.07.19

From: Chris Leitch, Leader

Subject: Update on injunction to stop Westland Milk takeover

Social Credit has been seeking financial and legal support to lodge an urgent injunction to stop the takeover of Westland Milk Products by Chinese conglomerate Inner Mongolian Yili which is 25% owned by the Chinese government.

That application for an injunction needed to be lodged before August 1st – the date the Scheme of Arrangement for the sale kicked in.

Party Leader Chris Leitch says there were a number of grounds the party and its legal team were considering but they have decided not to contest the Scheme of Arrangement or the High Court decision to approve it.

Consequently an injunction will not be lodged today.

The legal team are now focussing on the Overseas Investment Office decision.

Given that the Board presented shareholders with only one option, and have been unwilling to give shareholders any information about the process undertaken, the potential to proceed against the directors in their individual capacities is also under the microscope.

The board did not pursue investigation of two significant options, one being a merger with Fonterra, and the other being an approach to the government for assistance by way of a Reserve Bank loan and/or assistance from the Provincial Growth Fund.

Regional Economic Development Minister and Associate Finance Minister, Shane Jones, claimed, in a report in the Herald on July 18th that “as steward of the Provincial Growth Fund, I was never approached [by Westland directors] as to whether or not we could look at restructuring and help shore up that company.”

But Radio New Zealand reported on July 8th that it “understands ministers might be breathing a sigh of relief that farmer-shareholders gave Yili the thumbs up.

That is because rejection of the Yili deal might have left the taxpayer being forced to pick up the tab.

It went on to say it “knows that this possibility was considered at the highest levels of Wellington bureaucracy.”

And that “It was further told that there had been discussions about a potential bailout by government ministers.”

Clearly something doesn’t add up.

Board members who were shareholders in the company also stood to make significant personal gain from the outright sale.

The interest in the potential action has been enormous with a pleasing inflow of donations to support it.

Donations are still being accepted to this account - Kiwibank 38-9000-0601245-02

Donations will only be used for the legal action unless otherwise indicated by the donor.

We would still welcome offers of legal assistance to leader@socialcredit.nz

Ends

Note: Government assistance for the company would not have had to come from taxpayer funds. As Reserve Bank Governor, Adrian Orr, said in an interview in February "Money is created. The central bank is given the right to do that”.

That mechanism is how the first Labour government provided funding for the building of 30,000 state houses during its 14 years in government.

It’s also what quantitative easing carried out by central banks in numerous countries is. The European Central Bank has created around 35 billion Euros per month for some time, the Bank of England 435 billion pounds since 2009, and the Federal Reserve 4.5 trillion dollars.

The Bank of Japan currently holds about 50% of Japanese government bonds financed using that mechanism, and it is how China finances the many government owned companies like Yili.


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Whakaari/White Island: A Minute’s Silence For Victims

A minute’s silence will be observed at 2.11pm on Monday 16 December in honour of the victims of the Whakaari White Island eruption, Prime Minister Jacinda Ardern has confirmed...

The minute’s silence will be exactly one week after the eruption started on Monday 9 December. More>>

Gordon Campbell: On What An Inquiry Might Look Like
Presumably, if there is to be a ministerial inquiry (at the very least) into the Whakaari/White Island disaster, it will need to be a joint ministerial inquiry. That’s because the relevant areas of responsibility seem to be so deeply interwoven... More>>

 

More Discussions: National On Housing, Transport And Infrastructure

National has today released the ninth and tenth in our series of discussion documents, which contain a range of proposals to ensure New Zealand has the high-quality housing and infrastructure it needs to prosper, Leader of the Opposition Simon Bridges says. More>>

ALSO:

Trains: Govt's Plans For Rail

The Government has released its long term vision for a sustainable 21st Century rail network that gets our cities moving, connects our regions and gets more freight off the roads. More>>

ALSO:

Gordon Campbell: On Welfare Vs Infrastructure Spending

If New Zealand has a pressing need to stimulate its flagging economy, it seems very weird that the government is choosing a $12 billion package of infrastructure spending – mainly on road and rail – that by definition, will take a very long time to deliver their stimulatory benefits ... More>>

New Reports: "Immediate Commitment To Doing Justice Differently"

Justice Minister Andrew Little released two reports today, Turuki! Turuki! from Te Uepū Hāpai I te Ora, and Te Tangi o te Manawanui: Recommendations for Reform from the Chief Victims Advisor. Both recommend a fresh approach to the way criminal justice has been approached... More>>

ALSO:

"Heart-Breaking And Confronting": Surgical Mesh Restorative Justice Report

Minister Genter: “People have talked about losing the life they had enjoyed before surgical mesh harmed them – the loss of a steady job, the ability to exercise, a loving relationship in some cases. Others described the chronic pain they experienced..." More>>

ALSO:

Law Foundation: Government Decryption Powers Must Respect Privacy

The power of government to order users and companies to decrypt encrypted data and devices needs stronger privacy protections and additional safeguards, according to a study published by researchers at the University of Waikato. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels