bridge builder
Ahuwhenua revisited
Former dairyman shows how to get over things safely. page 78
Good management driving excellent returns. pages 64-65
Rural NEWS
it’s all go Fieldays new boss ready for event.
page 46
to all farmers, for all farmers
june 5, 2012: Issue 516 
www.ruralnews.co.nz
50% not good enough SU D ES H K I SSU N
FONTERRA CHAIRMAN Henry van der Heyden says TAF (trading among farmers) will not proceed unless “a clear mandate� is delivered on June 25 by shareholders. The Fonterra board is seeking a simple majority but van der Heyden has made it clear a 50.1% majority won’t be good enough.
“I want a clear mandate,� he told Rural News. “I can’t say what a clear mandate is but if it’s a 50% plus vote, the board will not recommend to proceed with TAF. “I want a mandate that will unify the co-op around this proposed evolution in our capital structure. This is the final vote in a long process. Shareholders have given us strong support in the earlier stages and this is what the board
is looking for this time.� In June 2010, 90% of Fonterra farmers backed TAF. But support for the proposed share trading scheme is waning over concerns about losing 100% farmer ownership and control. On June 25 the board will table an ordinary motion requiring a 50.1% majority. Fonterra shareholders received their voting papers last week. TAF critics won’t be happy with the ordinary vote.
For Larry Green, this is almost the end of the road at the Manawatu Gorge. For nine months the road has been closed and he has been the site supervisor since a huge slip blocked the road forcing all vehicles, including stockand logging trucks and milk tankers to use the alternative routes. These routes - the saddle road and Pahiatua track are long and winding and have added to twenty minutes to the normal journey through the gorge. As Rural News went to press, Green and his team were putting the finishing touches to the road which would see one lane open. – See story on pages 24-25 on similar problems in the Gisborne region
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Ashburton farmer Eddie Glass, who spearheads opposition to TAF, expects about 30% of shareholders to oppose the TAF resolution. He says a 30% ‘no’ vote may mean the end of TAF. “TAF is being promoted as the cure for the problem and it may end up becoming the problem. If 75% of farmers back TAF, we all have to get behind it. The TAF vote is meant to unite us and that remains to be seen.� Fonterra capital structure subcommittee chairman John Wilson is confident TAF will be approved. Wilson, who also sits on the due diligence committee, says some TAF critics are misleading farmers. “As a farmer I know TAF delivers 100% ownership and control.� Van der Heyden and Wilson will this week join other board members for shareholder meetings around the country. Van der Heyden will speak in Bay of Plenty, Waikato and South Canterbury, a hotbed of TAF opposition. Van der Heyden says the board is unanimous in its support for TAF and the challenge this week is to get farmers on the same page. “There’s a lot of information to consider, and we’re taking every opportunity to ensure farmers are as informed as they can be when they vote on June 25.� Fonterra Shareholders Council’s new chairman Ian Brown says 92% of the 35-member council backs TAF. He expects some questions from shareholders on the size of the shareholders fund and milk pricing at this week’s meetings.
Government calls in experts THE GOVERNMENT is appointing a review team to help the Kaipara District Council, after residents threatened a rates revolt over increases averaging 31%. “It has become apparent the Kaipara District Council is dealing with some serious issues it cannot cope with alone,â€? says Minister for Local Government David Carter (pictured). “The council has sought help from central government and the wider local government sector. We have agreed to work with the council and Local Government New Zealand to set up a small team to assist Kaipara to work through its issues. “The council recognises the assistance the Government can provide is limited. It also realises it must work closely with its community to resolve any problems. However, it is clear the situation in Kaipara is urgent and action is now needed.â€? “Under the current Local Government Act there are limited options for the Government to intervene to assist councils. A situation like this illustrates why the Government has embarked on its Better Local Government reform programme.â€? • Rates focus – page 7