Luxton Affirms Position With The Meat Board

The Minister for Food and Fibre, John Luxton today reiterated the Government's position on Meat Board reform when speaking to the Meat Board AGM in Hamilton.

"From the Government's point of view the desired outcome from the debate over producer board reform is clear. We want to hear from industry their views of the future. And, in the end, we want to implement reforms which take the industry forward with a common view of where it is going."

"The Government's broad objectives are: firstly to give farmers real ownership and with it more say in the governance of their organisation and secondly to improve accountability and responsiveness in the use of levies."

"The Government does not intend to take any action which would put New Zealand management of the meat country specific quotas at risk. My intention is to encourage the debate about preparing the meat sector for future challenges, and then to ensure that Government doesn't get in the way. In other words let the sector get on with it."

"The important question in all this for the producer board debate is "is the current Meat Board legislation the best entity to develop proprietary systems and can it even perform such a role'"

"In last month's open letter to producers I observed that any levy system should not crowd out commercial enterprise. Nor should farmers be forced to pay a levy for things that are inherently commercial.

"There are other fundamental questions farmers need to ask in relation to levies. Should farmers be able to have a say as to whether a levy should be raised, its size and how it is spent' What are the policy characteristics of 'industry good activities'' Would some of the Board's current activities be more appropriately funded on a commercial basis' What should the Government's role in the levying process be'"

"On this and all the other issues I discussed in my letter to farmers, I am keen to keep the momentum of debate going. From the outset of this process the Board has recognised the need to consult with farmers on the changes it had in mind. The Government welcomes that.

Following the consultation round just completed both the board and Government will be digesting the feedback received.