Peak industry groups are encouraging woolgrowers to vote for a 1.5 per cent levy in this year’s WoolPoll.
After WoolPoll opened on Monday, WoolProducers Australia (WPA) announced it was recommending levy payers choose the 1.5pc option, as it believes it will provide Australian Wool Innovation (AWI) with enough money to continue its work on behalf of the industry.
According to the WoolPoll Voter Information Memorandum (VIM), 1.5pc offers projected annual income of between $85.8-$88 million a year for the next three years, and WPA president Richard Halliday said this should be ample money for AWI.
AWI is urging levy payers to vote for a 2pc levy, particularly in light of reduced supply and price concerns.
“Two pc will see an expenditure of $110m per year over the next three years, which coupled with the budgeted expenditure of $111.2m for this financial year, means that AWI is intending to spend nearly half a billion dollars in woolgrower and tax payer money during the next four years,” Mr Halliday said.
An annual expenditure of $110m would represent an increase of over 40pc on the average of the past three years.
“We feel this is too much money to spend and we cannot stand for wastage of growers’ money,” he said.
READ MORE:
AWI estimate its reserves after the 2017/18 season sat at $115.3m, and Mr Halliday said as the industry body was currently flush with money, it should be prepared to drop its levy.
The Victorian Farmers Federation (VFF) supported WPA's position and is advocating for a 1.5pc levy.
VFF livestock president Leonard Vallance said livestock members were of the view a wool levy of 1.5pc would provide sufficient funding for AWI.
“This is about the prudent and productive investment of wool producers’ money,” Mr Vallance said.
“We have come to the view that a levy rate of 1.5pc is the best option, which will allow AWI to continue working to provide solutions to the industry, now and into the future.”
But Orroroo, SA, woolgrower Geoff Power said he would be voting for a 2pc levy, in order to keep the momentum of strategic marketing, and to continue educating the world on the benefits of wool.
Mr Power believed AWI’s research and development in robotic shearing methods was important, and should be supported by levy funds.
“As a core investment, AWI has funded shearer and shedhand training, this needs to continue at an accelerated rate due to some flocks being shorn on a six or eight-month basis, and when the drought ends and sheep flocks once again increase there will be a need for more shearers, shedhands and classers,” Mr Power said.
He was also in support of AWI’s investment in flystrike and worm problems, wild dogs, and encouraging the next generation into agriculture.
“There is debate that due to improved wool prices a lower levy could be applied,” he said.
“I point out that although we are enjoying sustainable price gains, production across many wool growing areas will be reduced due to prolonged drought counteracting any gains, therefore a 2pc levy will enable our industry to fund programs that will benefit the bottom line of woolgrowers.”
WoolPoll is a triennial vote undertaken by eligible woolgrowers to determine the amount of their wool cheque that goes towards research, development and marketing by AWI; voting closes on November 2.
What do you think? Comment below.