'Poisonous' wrangle harming wool industry

David Carter
David Carter
Agriculture Minister David Carter has labelled as "poisonous" a campaign mounted by opponents of a proposed new structure for the wool industry.

With a week till the deadline for farmers to subscribe for shares in Wool Partners Co-operative (WPC), a new co-operative marketing and supply company, claims and counter claims are flying of alleged conflicts of interest and scaremongering.

The minister yesterday replied angrily to accusations that he had a conflict of interest, made by North Island farmer and genetics company owner Ian Walsh, saying the opponents' tone in the WPC debate was holding the industry back.

Mr Carter said Mr Walsh's accusations, which he rejected, were circulated by the same public relations firm which acts for the New Zealand Wool Exporters Council and which opposes WPC.

"When you see such a poisonous campaign being undertaken, farmers may like to consider who genuinely has the New Zealand sheep farmers' interests at heart."

WPC chairman Jeff Grant also took exception to Mr Walsh's accusations that he had a conflict of interest.

Meanwhile, the country's largest wool exporter, New Zealand Wool Services International, has labelled WPC deputy chairman Mark Shadbolt's comments that current wool prices were a "temporary spike" as "irresponsible scaremongering".

The root of the animosity is an attempt to get growers representing half the nation's strong-wool clip to commit to supply a farmer-owned co-operative, WPC, to be built on the foundations of existing wool company Wool Partners International, which is 50% owned by farmers.

Farmers are being asked to subscribe for a minimum 65 million $1 shares payable over five years in WPC, which the company backers say will transform the industry through direct supply contracts with users, the use of brands and by creating an integrated supply chain.

Mr Walsh said Mr Carter, a Banks Peninsula farmer, had a conflict of interest because he has shares in a peninsula wool grower group supplying WPI and because he has subscribed for shares in WPC.

Mr Carter said he complied with Cabinet rules; it was up to farmers to decide whether to buy shares in WPC and that he was a shareholder in NZ Wool Service International but not WPI.

He was angry at the tone of the debate.

"Mr Walsh's accusations are exactly the sort of sniping which is holding the wool sector back. As minister, I am determined to continue to work towards unifying this sector."

Mr Walsh alleged Mr Grant's conflict of interest stemmed from his role as a director on the rural funding group AGMardt, which considered but rejected a funding application from the same Banks Peninsula farming group.

Mr Grant yesterday provided evidence that he was not chairman of AGMardt when the application was heard, and because of his interests in the wool sector he removed himself from all discussions.

Mr Walsh was approached for comment but had not seen the replies.

 

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