AWI chair eases worries
THE new chair of Australian Wool Innovation, Colette Garnsey, says there’s no risk the company will become insolvent.
That’s despite claims by the former chairman Wal Merriman – who resigned last week after 10 years as chair – at a senate estimates hearing last month that AWI would become insolvent if a 1.5 per cent levy was voted in at WoolPoll.
Wool growers have immediately demanded Ms Garnsey tell the “marketplace” the industry was stable and AWI was “there to support and work for the industry”.
“We don’t need scaremongering … Colette must give confidence to the market and tell our marketplace liquidation was never going to take place,” Australia Wool Growers Association chairman Rob McBride said.
Ms Garnsey said there was no risk AWI would be insolvent.
“That would only happen if you continued programs on without ever reviewing forecasts or the budget,” she said.
“We will cut our costs in order to work with the levy that the growers vote for.”
Ms Garnsey was appointed AWI chair after a unanimous vote last week, hours after Mr Merriman announced his intention to step down at an out-of-session board meeting.
After a controversial 12 months for Mr Merriman in which he clashed with the media and was accused of spying on growers, Ms Garnsey said it was “Wal’s decision and he was definitely not pressured”.
But Ms Garnsey said the direction of AWI would not change too much. “My direction, though, will be very much following the three-year plan the company has developed. That’s what our shareholders … will expect us to continue to do.”
While Ms Garnsey said her highest priority would be acting upon the 82 recommendations in the EY review, the five recommendations that had not yet been actioned – which includes capping board terms at 10 years – would still be taken to an extraordinary general meeting next year.
Mr Merriman will continue on the board at least until the end of next year, when the next director election cycle comes up.
Ms Garnsey said it was “completely appropriate” and “he has a lot to offer this company and a lot to offer the growers”.
Mr McBride said “it would be appropriate if he left the board to allow new leadership to evolve”.
Minister for Agriculture David Littleproud thanked Mr Merriman for his service.
“He will leave a legacy few will forget.
“He’s chosen a logical time to step down,” Mr Littleproud said.