Investors will have some say
Shareholder control of Fonterra?
One hundred per cent of the company’s vote is not 100 per cent control. Creditors of whatever sort place conditions, hence some control over the company.
With the Trading Among Farmers fund investors would have significant control because without the fund TAF doesn’t function, investors into the fund will have to receive whatever return it takes to keep them there.
The robustness of the formula that calculates the milk price will definitely be tested as some of the fund investors’ return may come from there. It shouldn’t, but would we know? My instinct or gut feeling tells me that TAF is not a path to walk if one values the true spirit of a co-operative. Piako District having left the Papakura area which when I lived there for more than 10 years was a lovely South Auckland town but went downhill after the council made some very unsound financial decisions at a huge cost to ratepayers.
Therefore it is with great frustration that during the past eight years my rates have almost doubled.
To add further insult to injury we are now told that these increases do not cover the necessities of wastewater and we need to decide on a pan tax.
Having just completed my submission to the future of our community – the draft states it has allocated almost $19 million to the future development of Precinct F and $3 million to Matamata Library to name only two unnecessary expenses at this time.
The ever-increasing rates will not only halt future growth in our community, it will bankrupt us driving businesses and ratepayers to move away, with many lower-income families impoverished by the obscene cost of the rates for facilities that should already be funded.
Stop spending our money, stop borrowing and cap councillors’ incomes.
That alone should cover the future needed pan tax.