Wednesday, 22 October 2014 09:08

Levy promoter blames commercial interests on loss

Written by 

THE WOOL industry needs a leadership group, says Wools of NZ chairman Mark Shadbolt, who urges prompt talks on setting one up now that growers have rejected the proposed levy.

 

But Wool Levy Group vice-chairman Derrick Millton says Wools of NZ was one of two grower-owned companies that “scuttled” the wool levy, which would have achieved that leadership. Now those companies must show what they can do in the absence of a levy, he says.

But Millton also believes there may be other ways of raising funds from growers for industry-good activities.

Shadbolt told Rural News the rejection of the wool levy leaves the future of wool in the companies’ hands and “that is probably where it should be”. Commercial efforts such as Wools of NZ with its branded strategy or Primary Wool Cooperative’s Just Shorn brand – rather than a levy – will bring benefits to the bottom line.

But he wants the parties to talk soon about an industry leadership group to look at issues such as education. 

“I would support an industry leadership group as we promoted as an extension of WIRL (Wool Industry Research Ltd) or something to that effect.

“There has been discussion throughout the levy campaign as to ‘if it doesn’t happen, what will we do next?’ I don’t support the levies obviously, but we need a leadership group, and extension of WIRL with blinkers off will be beneficial.

“I’m trying to take a forward looking position because anybody who takes on something in the industry realises how hard it is and that’s why I commend the effort of the levy group.” He says the result was a reflection on the history of levies rather than the future.

Levy group vice-chairman Millton says the group was tasked with presenting a levy proposal to farmers. “We did our best but clearly it was not what the majority of farmers wanted.”

Millton says the proposal was scuttled by two grower-owned commercial companies that convinced some wool growers not to vote for the proposal.  The onus is now on those companies to show what they can do in industry leadership and to articulate that.

“In my view the chair of NZ Merino [Ruth Richardson] stating that a wool levy was a dumb idea was irresponsible when the business represents such a small slice of the wool industry.” 

He claims it is not realistic to believe a post-harvest research business, WRONZ and its subsidiary WIRL, can “morph” into an industry-good organisation.

Millton believes there are alternative ways to collect funds for industry-good activities but they must be collected evenly across the industry. But it would require companies to step up to the plate. 

“For Mark Shadbolt to suggest we now need an industry summit to find a way forward is too late, the pan-industry wool levy review group has been operating for three years to bring unity to this industry.

“We have to settle and see what is now required. But wool growers have no collective industry voice. What do we do about education, innovation and communication? How do we fund and promote these things in the future.”

• It’s over! Page 26

More like this

Wool campaign making strides

A group set up to boost education and promotion of wool says it has made positive strides during the first year of its three-year strategy.

On a mission to add value to wool

While wool returns continue in the doldrums, smart sheep farmers are looking for alternatives for a product that currently cost more to get off a sheep's back than it's worth. One such initiative is run by husband and wife team Hayden and Anastasia Tristram who farm at Wanstead in the Central Hawke's Bay. Mark Daniel reports.

Wool petition hits Parliament

South Canterbury farmer Angela Blair has delivered a petition to Parliament calling on the Government to reverse its decision to fit rural schools with synthetic carpet.

Featured

HortNZ levy vote looming

Commercial fruit and vegetable growers are being urged to their say in the upcoming levy referendum to enable Horticulture New Zealand (HortNZ) to continue its work for the sector.

Fonterra appoints new CFO

Fonterra has appointed a new chief financial officer, seven months after its last CFO’s shock resignation.

National

Rural GP's inspiring legacy

The legacy of Dr Peter Snow continues to inspire as the recipients of the 2023 and 2024 Peter Snow Memorial…

Off the radar

A year on and the problems created by Cyclones Hale and Gabrielle has largely dropped off the radar of media…

Machinery & Products

GPS in control

In a move that will make harvesting operations easier, particularly in odd-shaped paddocks, Kuhn has announced that GPS section control…

» Latest Print Issues Online

The Hound

Wrong, again!

OPINION: This old mutt well remembers the wailing, whining and gnashing of teeth by former West Coast MP and Labour…

Reality check

OPINION: Your canine crusader gets a little fed up with the some in media, union hacks, opposition politicians and hard-core…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter