She won't be right, mate
John Key’s ringing of a bell to launch Fonterra’s trading on the New Zealand stock exchange signals the death knell of the cooperative as farmers know it, Labour’s Primary Industries spokesperson Damien O’Connor says.
“The Prime Minister has long been a supporter of strengthening the capital markets and providing opportunities for traders in New Zealand.
“While investors have been hugely enthusiastic about TAF, our farmers should be extremely wary of that given the upward pressure on and the additional cost that it will mean for Kiwis wanting to get into dairy.
“There is already evidence that this will create a more complex arrangement for the growth and supply to Fonterra and in my view it will undermine the strength of the cooperative.
“What is really needed is a legislative cap (see attached Bill) on the number of units available for investors - something that will ensure farmers can retain control of Fonterra.
“Without such protection New Zealand’s biggest and most successful cooperative company is set to become just the latest victim of this Government’s hands-off, she’ll be right mismanagement.
“That could hardly be described, as John Key would have it, the ringing in of a new era,” said Damien O’Connor.