9. R DOUG WOOLERTON (NZ First) Link to this
to the Minister of Agriculture
What recent reports, if any, has he received regarding Fonterra’s capital restructuring proposal?
Hon JIM ANDERTON (Minister of Agriculture) Link to this
I have received various reports over the past few days, including advice from the chair of Fonterra that the board has decided to defer a shareholder vote on its capital structure and to consult further with farmer shareholders.
Does the Minister think the proposed capital structure, which if implemented would see farmers holding just a 65 percent stake in the new company, with the rest likely to be snapped up by foreign investors, is in the national interest; if so, why?
It is in New Zealand’s national interest for our largest company to have global scale and reach, but also for it to be based in New Zealand. There are exciting international opportunities in the dairy industry, and Fonterra’s shareholders must decide themselves how best to take the company forward in order to take advantage of those opportunities.
Is the Minister concerned that Fonterra will wage a mammoth public relations campaign with farmers’ own money, under the guise of the “genuine consultation process”, to ensure that the necessary 75 percent support for the restructuring plan is achieved?
I understand that Fonterra intends to work through a programme to 2010 with its shareholders to enable them to make an informed decision by that time. As I have said, the Government has worked with Fonterra to ensure that we retain the national interests of New Zealand, and the entity Fonterra as a New Zealand corporation, but also that there is opportunity for Fonterra to develop in the interests of New Zealand. All of these matters are, in essence, in the hands of the stakeholders of Fonterra itself, which must own the problems and challenges it faces, as well as the solutions.
Will the Minister actively work to ensure that Fonterra remains in New Zealand hands; if so, what steps will he take to ensure that it remains in New Zealand control?
It is important for the House to understand that the Government has never endorsed any package that Fonterra has put forward. We have, in fact, been committed to seeing that Fonterra grows as a New Zealand company. We have worked through with Fonterra a number of measures to safeguard both its ongoing development as a New Zealand corporation, and farmer ownership and control. Both of those matters, of course, are in the hands of the shareholders of Fonterra themselves.