Labour MP Damien O’Connor’s Dairy Industry Restructuring Bill No 2 has been drawn from the ballot.
“My Bill – the Dairy Industry Restructuring Bill No 2 – has been drawn at a crucial time for Fonterra. A prospectus has just been launched seeking a minimum of $500 million from investors who will own the rights to dividend and capital appreciation in New Zealand’s largest company.
“The Bill limits the total quantity of investment units available to 20 per cent of the value of Fonterra.
“The current limit of 25 per cent is written into the constitution of the company. This Bill will place the lower limit into legislation and require the support of Parliament should the Board and shareholders decide at some point in the future to increase the percentage of the company open to investors.
The Dairy Industry Restructuring Act which enabled Trading Among Farmers was passed a few months ago only after a lot of work by the board, a lot of consultation and finally a majority of shareholders voting in favour of TAF.
This Bill is an MP acting without the support of a majority of shareholders.
I support the control of Fonterra staying in the hands of its farmer suppliers.
But this is not a matter in which politicians should meddle.
Decisions on the ownership of the company should be left up to voting shareholders – who are the suppliers – not MPs.