Fair vote needed on TAF

What will farmers be voting on if they haven’t the opportunity to study the detail of trading among farmers (TAF) proposals? Labour’s Primary Industries spokesperson Damien O’Connor asked today.

His question was in response to the announcement that a second vote will be held on the issue of capital restructuring in Fonterra.

“While Labour welcomes the announcement, the vote must be comprehensive and democratic, by way of postal ballot, rather than at a special meeting to be held in June,” Damien O’Connor said.

“All Fonterra farmers must be given the right to have their say on the core issue of whether TAF is needed, and not be distracted by the issues of milk price and share value.

“The message I get from a growing number of farmers is that each and every one of them wants to see the full details and due diligence on TAF proposals and then make a decision to support it or not by way of postal vote.

“Any attempt by Fonterra to seek partial endorsement of TAF, before the details are known by its shareholder-farmers, is, in my view, an undermining of their basic shareholder rights.

“I believe the Dairy Industry Restructuring Amendment Bill currently before Parliament should be withdrawn until a clear mandate is received for TAF to proceed.

“The legislation as it stands will create a dilemma for farmers and will impose milk price interference and manipulated share price on their cooperative if they reject TAF.

“Fonterra’s directors have astutely recognised the growing concern among farmers regarding the proposed changes, which have yet to be fully detailed or explained by the board of Fonterra.

“The National Government should put the current DIRA legislation on hold until farmers have the information and have spoken, through the vote, on whether capital restructure is needed or supported,” Damien O’Connor said.