AWI recommends increased levy rate but yet to say why

Wool growers have been advised what levy to vote for in this year’s WoolPoll — but won’t be told why for six weeks, prompting a backlash.

WoolProducers Australia president Ed Storey says wool growers need more information to make an informed decision on the WoolPoll levy rate.

Australian Wool Innovation is recommending wool growers vote for an increased levy in this year’s WoolPoll, without first providing further information to levy payers.

AWI sent out a statement yesterday recommending wool growers vote for a 2 per cent levy in the upcoming WoolPoll — an increase from the current 1.5 per cent levy. The other rates on offer are 0 per cent, 1 per cent, 1.5 per cent, 2 per cent and 2.5 per cent.

However, the marketing, research and development body has come under fire from peak grower lobby group WoolProducers Australia for doing so six weeks before levy payers receive voting information to allow them to make an informed decision.

WoolPoll voting opens on September 13, with the voter information memorandum expected at the end of August or just prior to voting opening.

WPA president and grower Ed Storey said it was “extremely disappointing” AWI have made their recommendation six weeks prior to levy payers being able to see the information they used to make that decision.

“It means AWI have six weeks to brainwash levy payers into voting for a 2-per-cent levy, it is not acceptable. We need have all the data, expected budgets and reserve levels,” Mr Storey said.

“We have written to the AWI chair to firmly request that it is provided immediately, or they must stop lobbying.”

Mr Storey said it was appropriate for AWI to recommend a levy rate and to lobby for it, but not for six weeks before levy payers have access to the information needed to make a decision.

“It is morally unacceptable,” he said.

Mr Storey also criticised the 2.5 per cent levy rate option being provided.

“This demonstrates how little AWI listened to levy payers last time, the 2.5 per cent rate is there to ensure their preferred rate isn’t the highest option.”

In response to a question from The Weekly Times about why the information hasn’t been provided to levy payers, an AWI spokesman said: “We are open and honest about what we want growers to support and thought now is the right time to start the discussion. More information will be sent to growers ahead of when voting opens”.

AWI chairman Jock Laurie said an increased levy would deliver more industry wide investment that benefited all Australian wool growers.

“Without an increase in the wool levy good projects that help growers will not be acted on or delivered as quickly,” Mr Laurie said.

Australian Wool Growers Association chairman Robert McBride said a “quantum change” was needed at AWI and they would be suggesting the levy rate remain at 1.5 per cent.

“The dollars will be better in wool growers pockets to help them rebuild their flocks (after drought),” Mr McBride said.

As for the 2.5 per cent option, Mr McBride said “AWI cannot be serious?”.

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