Dairy reformers told to slow pace

By Philippa Stevenson

agricultural editor

Opposition agriculture spokesmen yesterday urged the Government and dairy industry leaders to take a warning from the shock election defeat of Dairy Board chairman John Storey and slow the pace of proposed reforms.

The Commerce Commission, in a draft determination, has already declined the merger of the Dairy Board with up to eight companies.

Yesterday, dairy industry establishment board chairman Graham Calvert met the commission.

It is understood he has asked for up to three months extra to reply to the 48 complex questions raised in last Friday's determination.

The commission had invited submissions by September 17, followed by a public conference on October 5 to 8.

It is expected to grant some postponement and industry sources said it was now likely to be March next year before farmers were asked to vote on the company mergers, which could unite the industry into the country's biggest company.

Until the commission's decision - whose negativity took industry leaders by surprise - farmers were expected to vote on the mergers late next month.

Meanwhile, the leadership of the Dairy Board over the next critical months was in doubt yesterday as Mr Storey kept silent after the sudden end to his 20-year industry career.

It is unknown whether he will continue as chairman until his term ends next June or step down immediately, possibly to make way for his deputy, fellow Dairy Group director Graham Fraser.

On Tuesday night, Mr Storey made a congratulatory phone call to the man who defeated him in the Dairy Group's Te Awamutu ward election, Jim van der Poel, but otherwise the board head of 11 months has been unavailable for comment. He is expected to speak at the company annual meeting in Hamilton today.

Labour and New Zealand First agriculture spokesmen said Mr Storey's defeat should send a message to the Government and industry leaders.

Labour's Jim Sutton said they should listen to the voice of the dairy farmers and send the Dairy Industry Restructuring Bill back to the select committee for six months. The committee reported back to Parliament on Monday.

Doug Woolerton, of NZ First, said the farmer vote was a clear message that deregulation plans were "hasty and ill-conceived, and that farmers have been kept in the dark about the future of the industry."

Mr van der Poel said his victory would "hopefully send the message that we need to make sure that farmers feel part of the change process.

"We are looking at pretty momentous changes and we need to make sure that we are taking everybody with us, and that they will benefit from it."

Dairy Group chairman Doug Leeder said the reasons for the voters' choice were theirs alone.

"People will speculate because John has been at the head of this change, but he hasn't been the only one there. With his role he's been the spokesperson but there have been other people around him, including myself."

Mr Leeder said the rationale for the mega merger remained compelling.