Tax Bill Enables First Producer Board To Reform

Food, Fibre, Biosecurity and Border Control Minister, Hon John Luxton, today welcomed proposed legislation clarifying tax consequences dissolving the New Zealand Raspberry Marketing Council (NZRMC).

Mr Luxton said the special tax provisions ensure that any transfers of assets to growers from the four District Raspberry Marketing Committees are treated like transfers from companies to the shareholders on wind up.

"The NZRMC asked Government to deregulate the raspberry industry instead of rewriting the outdated Raspberry Marketing Regulations when it presented its strategic plan to Government in November last year. Since then, we have been working with the industry to develop the detail of the necessary legislative and regulatory changes."

"Raspberry industry representatives have been closely involved in the reform process and it is a good example of the productive sector working collaboratively with Government to achieve its strategic goals."

Deregulation requires the dissolution of the NZRMC and the four District Raspberry Marketing Committees - Nelson, Canterbury, Otago and North Island.

"Of the four District Committees, Nelson and Canterbury have significant assets to be distributed, so the legislation introduced today will provide grower members with certainty about the tax consequences of distributions they receive."

Mr Luxton said he understood that the marketing functions of the Nelson and Canterbury Raspberry Marketing Committees were to be continued by alternative marketing organisations.

Draft regulations to dissolve the NZRMC and the District Committees are being prepared in consultation with the NZRMC and the Committees concerned. Regulations are expected to be passed into law before 30 June this year.

"The raspberry industry is the first sector to require legislative change to implement its reform plan."

"Farmers and growers in the rest of the productive sector are currently working through their industry plans. Progress on policy issues and accompanying legislative changes are at various stages of development," Mr Luxton said.