Long-term crisis fallout immeasurable

Based on the DCD experience, Fonterra may have been under the impression time was on its side once it told the MPI that bacteria connected to botulism had been found in some whey products. If so, it was wrong. The MPI’s subsequent handling of the crisis suggests it learnt the hard lessons from DCD, even if Fonterra did not.

Key agencies were notified immediately. National’s ministers also acted swiftly. The Government escalated the crisis to senior minister level.

The team working round the clock since last weekend includes Trade Minister Tim Groser, Finance Minister Bill English, Health Minister Tony Ryall ‘‘Glib assurances that the problems are ‘details’ or that they are a sign that New Zealand is a ‘victim of its own success’ in trade just don’t cut it. The glibness is stalking other aspects of New Zealand’s foreign trade, with the country’s ‘100% Pure’ tourism campaign becoming a festering sore as experts claim that the country might not in fact be ‘100 per cent pure’.’’ An unflattering editorial by China’s state-run Xinhua news agency draws a link between New Zealand’s claim to be ‘‘100% Pure’’ in its tourism branding and the latest contamination scandal engulfing Fonterra.

WALLY

WINNER

Prime Minister John Key: After weeks of distractions over leaked emails, intercepted phone records and spooks, the Fonterra crisis has put him back in charge of the agenda.

The damage to our country’s reputation as a ‘‘100% Pure’’ clean green haven may be even more lasting than the damage to Fonterra’s brand. Fonterra chairman John Wilson: When chief executive Theo Spierings rushed to Beijing to apologise to Chinese mums and dads for the infant formula scare, Mr Wilson should have fronted in New Zealand to offer Kiwi mums and dads the same apology.

WORK IN PROGRESS

We couldn’t help but notice an entry on Fonterra’s website lauding its approach to safeguarding the interests of shareholders. The cornerstone principles apparently include transparency, effective risk management and communication. Going by its handling of the infant formula crisis, achieving these standards is still a work in progress.