Shareholders benefit from mussel industry surplus

A significant portion of the Mussel Industry Council reserve surplus is being returned to shareholders through a one-off levy reduction to $7 a greenweight tonne.

The decision is good news for shareholders, who have been struggling for the past two years.

The 2004/2005 levy was set at $9.78.

Council chairman Peter Vitasovich said the reduction was an attempt to return cash to shareholders hit by reduced profits due to high exchange rates and rising fuel costs.

While the council 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.

Council chief executive Lorna Holton said the cuts should warn off Government officials set to impose extra charges on the industry. "We're trying to help out in difficult times, but we also want to know what the Government is going to help."

- NZPA