Livestock company rewards directors

Livestock Improvement's directors and members of the national council got the pay rise they were after at the annual meeting in Hamilton, but were told to put up a better case next time they wanted an increase.

The chairman's remuneration will rise from $65,000 to $80,000, the deputy chairman gets a $1000 increase to $40,000 and each elected and independent director will receive $35,000 (up from $25,000 and $30,000).

The national council chairman will get a $5000 raise to $15,000.

Discussion on remuneration tended to overshadow the farmer-owned co-operative's good financial result for the year to May 31.

Former Dairy Board director Tony Wilding told the honoraria committee, which made the recommendations, their arguments had been weak and needed to be better next time.

The directors' remuneration received 64 per cent support and the national councillors' rise 79 per cent.

Most of the voting from the co-operative's 12,056 shareholders was done by proxy.

Livestock Improvement declared an after-tax profit of $4.8 million on turnover of $98 million.

The Hamilton-based artificial breeding company recently listed on the NZAX market.

Livestock Improvement had assets of $97.76 million in the year ended May 31.

Chief executive Stuart Gordon said the introduction of a share structure on April 16 was acknowledged as innovative by farmers and commentators alike.

There were two classes of shares - ownership and investment shares.

During the year the company expanded its genetics business with the establishment of Deer Improvement New Zealand and the launch of the Livestock Improvement bull progeny testing programme in Australia.

Guest speaker, National Party leader Don Brash, said successive governments had created the impression farming was a "sunset industry".

"It is hugely important in New Zealand's future ...

"I want to declare very clearly I regard agriculture as essential."

In a wide-ranging speech, Brash said National wanted to stop the flow of people out of the country, increase the growth rate, sort out employment legislation and deal with the big issues of roading, education, the welfare state and energy.

He also said the Resource Management Act needed a major overhaul and National would repeal the carbon tax Labour proposed to introduce under the Kyoto agreement.

- NZPA