New Zealand Wool Referendum Gives Hope to Industry

A referendum proposed for October will request farmers to vote for the reinstatement of a levy on wool within the New Zealand wool industry. The levy would be between 2 and 5 cent per kilogram for greasy or slipe wool and would fund $4.6 million of good industry activity each year.

In this week’s Dian Skelton blog, I will be discussing this potential levy and what it will mean for the New Zealand wool industry and farmers.

An Industry in Need

Dian Skelton is Director at ViewPoint Software Services Limited, founder of the MostlyManx shop on the Isle of Man and co-owner of the Laxey Woollen Mills. The Mills specialises in producing Laxey Manx Tartan which is unique to the Isle of Man.

Some experts in the industry will acknowledge the need for such a levy, citing the somewhat stagnant condition of the wool industry in New Zealand as well as the need for leadership and direction. It would also fund good industry activities like research, education and promotion of the industry.

Sandra Faulkner, chairwoman of the Wool Levy Group said “Sheep farmers can help shape the direction of the wool industry by voting 'yes' in a referendum to reintroduce a wool levy to fund industry good activities of benefit to farmers and the wider wool industry."

She also commented on the need for an industry good body for the wool industry “There are 30 industry good bodies in New Zealand, yet wool is the only primary sector which is not represented.” I doing this, there is a hope that the aforementioned good industry activities would become a reality.

Opponents Want Proof of Benefits

The Wools of New Zealand (WNZ) company, which is owned by 700 farmer shareholders, said that it wasn't trying to tell fellow famers how to vote, but urged them to question the purpose of reinstating such a levy. WNZ chairman Mark Shadbolt said “The sheep industry is the sheep industry and it should represent wool and meat. Most of our farm animals are dual purpose and again we question, is this just a further duplication of costs?”

Mr Shadbolt went on to say that the industry already has the facilities in place to do the jobs that the levy would supposedly bring, citing the Wool Industry Research Consortium as an example and reiterated his belief that it would merely add further cost to the industry and potential cripple growers.

Dian Skelton’s Thoughts

Dian commented on the potential levy saying that it was a proposition made with good intentions. However, she voiced her concerns for the wool growers who may be hit by higher prices and the cost of the proposed good industry organisations that Mr Shadbolt suggests are already in place.

As Dian has said, in some cases the best option is to review the facilities you already have in place. If you believe that you need new facilities then it means that the existing ones are not operating to their maximum output. In some cases all that is required is a revamp or modernisation and working in both textiles and software, Dian understands the need to keep up with technology and the industry.

For more information of ViewPoint Software Services please visit their Contact Page.

Dian Skelton – Director – ViewPoint Software Services Limited