Were Fonterra And the Government in Collusion?
Just four days after the General Election the true state of the dairy industry is revealed – returns for milk that the
New Zealand economy is reliant on have slumped.
“Questions need to be asked by New Zealand voters on why they were not informed about this serious decline before
Election Day,” says New Zealand First Leader, Rt Hon Winston Peters.
“The drop in payout is a $5 billion hit to the New Zealand economy and 2 per cent off nominal GDP.
“It appears the government and Fonterra joined forces to keep the facts hidden from voters?
“Taxpayers had a right to be fully informed about the state of the economy, and any impacts it may face. After all, they
are the ones called upon for cash relief when farmers are affected in droughts, floods, etc.
“We went into the election knowing there had been a setback, with a revision in the price down to $6 per kilogram of
milk solids.
“At the time the Prime Minister put this down to the volatility and fluctuations in dairy prices, but as Prime Minister
he must have been briefed on the forecasts, and the global markets. With an election around the corner, he was not
forthcoming with the true state of the economy.
“It is not just a bit hit for farmers, especially those with new conversions and large mortgages. The plunge will have
huge repercussions in the regions - when the farmer is worse off spending dries up and rural businesses and towns are
the first to feel the pinch.
“And why did Rabobank, a leading rural lender, wait until the first working day after the election to release a survey
showing that almost half of our dairy farmers expect the performance of farms to worsen in the next year and that rural
confidence is at a two-year low.
“New Zealand First has been warning that the reliance on milk and log exports into one market – China – would have
serious repercussions. But the National Government has had its blinkers on, talking up a rock star economy and ignoring
reality.
“When the Prime Minister said New Zealand is “on the cusp of something great” New Zealand First trusts this is not what
he meant.”
ENDS