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Fonterra' s vote on Trading Among Farmers means more safeguards are needed in the proposed legislation to protect farmer control and ownership, Labour's Primary Industries spokesperson Damien O'Connor says.
"When the law changes voted on by farmers today first came in front of Parliament, we (Labour) said protections need to be locked into law because putting them into Fonterra's constitution is not enough," O'Connor says.
"Our fears have been realised with constitutional amendments to lock in farmer ownership only receiving 72.8% of the vote. Changing the constitution requires a 75% vote so they haven't been adopted.
"The result is that farmers have voted for trading among farmers, but even though there were more votes for the protection measures they haven't passed.
"If trading among farmers goes ahead without Labour's proposed amendment, control of Fonterra and its profits could pass to non-farmers and potentially out of New Zealand," O'Connor says.
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