New Zealand First is presenting legislation to amend the Dairy Industry Restructuring Act, 'because farmers have had enough,” says Winston Peters, Northland MP.

After months of false promises, dairy farmers are telling the New Zealand First Leader that they've had enough of Fonterra's glass half full approach.

'Mr Spierings and Fonterra's board have promised much and delivered little,” says Mr Peters.

'While Mr Key went out of his way to insult Russia, the world's number two dairy import market, Mr Key's European and American mates have exploited our naivety by leaping into our markets.

'Why has Fonterra, the Fonterra Shareholders Council and Federated Farmers all been quiet as church mice about this blanking of Russia let alone the hundreds of billions in subsidies paid by America, Canada and the EU to their farmers - our supposed mates?

'Farmers have had a truck load of excuses, tortoise like pace on added value, and boycotting the Russian market because My Key without any Government official policy said they should, a suggestion Fonterra meekly followed.

'Fonterra, the Fonterra Shareholders Council and Federated Farmers are not an arm of Government so they should stop behaving like they are and instead start acting in the interests of their suppliers.

'To witness Fonterra's Chair John Wilson, on TV3's 'The Nation” blaming the Russian boycott was both pathetic and hypocritical.

'And whilst Fonterra is at it, how can 19 of their management and board get over $31 million in salaries and benefits whilst dairy farmers are going to the wall? In short, when are their salaries going to reflect ‘the market' and their dismal performance?

'This is why New Zealand First is presenting legislation to amend the Dairy Industry Restructuring Act.

'However, reform counts for nothing if Mr Spierings will not front despite being paid close to $5m. Reform counts for zero if Fonterra's chair, Mr Wilson, who gets $405,000 in fees, is just being a mouth piece for his managers.

'Every farmer needs to wake up to the fact that New Zealand First will unshackle Fonterra but at the same time they themselves must demand that Fonterra senior management and board start putting the farmers and regional New Zealand first,” Mr Peters said.

New Zealand First's Dairy Industry Restructuring (Milk Supply Obligations) Amendment Bill 2016

General Policy Statement

This Bill seeks to remove requirements upon Fonterra to automatically take all new milk supply, irrespective of the economics involved. This requirement means a substantial investment in plant to meet milk supply growth perpetuating a volume-first approach as opposed to value-first. To meet the needs of farms that are currently being converted there will be a sunset clause.

This Bill will further remove pro-competitor clauses, which requires Fonterra to supply bulk raw milk to direct competitors. It is time for companies in the New Zealand dairy industry to stand on their own two feet by building milk-supply or entering into commercial contracts with Fonterra. Without such reform, Fonterra's ability to maximise the milk price for its farmer-shareholders and New Zealand in general is affected. As Fonterra is a regulated company this provides a control to prevent it from abusing its regulated monopoly position.

This Bill furthermore seeks to give to Fonterra farmer-shareholders an option, by way of a resolution at the Fonterra Annual General Meeting, to wind up the Fonterra Shareholders Fund that was introduced as part of the 2012 amendment to the Dairy Industry Restructuring Act.