A significant portion of the New Zealand Mussel Industry Council (NZMIC) reserve surplus is being returned to shareholders through a one-off levy reduction to $7 per greenweight tonne.
The decision, made at the NZMIC AGM and conference this week, was good news for shareholders, who have been struggling under difficult
economic conditions over the past two years.
The new rate effectively cuts $2.78 off the 2004/2005 levy of $9.78.
NZMIC chairman Peter Vitasovich said the reduction was an attempt to get funds back to shareholders who were experiencing reduced profits due to high exchange rates and rising fuel costs.
While the organisation will not be able to sustain the one-off levy reduction at $7 in 2006/2007, it has been proposed shareholders consider a new lower levy rate for $9.30 next year.
However, NZMIC chief executive Lorna Holton said industry organisation cuts should signal a red light to government officials set to impose additional charges on the industry.
"The fact that we are already making cuts within the organisation means the government needs to be very careful in any propositions they make," she said.
"We're trying to help out in difficult times, but we also want to know what the government is going to help."
- nzpa
