web analytics

National Party President selling out?

Written By: - Date published: 12:09 pm, May 12th, 2016 - 14 comments
Categories: capitalism, national - Tags: , , , ,

Peter Goodfellow

Peter Goodfellow

National Party President Peter Goodfellow, may be selling out of Sanford Ltd, the giant, family-controlled fishing company, flicking a good chunk of his holding to Japan’s biggest seafood company, according to a report in the Nikkei Asian Review on Monday.

Veteran New Zealand journalist Mike Field, who has recently published The Catch: How Fishing Companies Reinvented Slavery and Plunder the Oceans,  exposing slave working conditions and fishing practices on foreign charter vessels in NZ waters, reported that Goodfellow, a scion of one of New Zealand’s wealthiest families, requested Maruha Nichiro to buy a 4.7% stake.

The $25 million deal prompted considerable curiosity because it involved an off-market purchase of shares from Sanford’s second biggest shareholder, Avalon Investment Trust, which is run by the family of Peter Goodfellow, Field wrote.

Avalon retains a 9.2% holding. The largest shareholder, Amalgamated Dairies, with around a third of the company, is also a company controlled by the Goodfellow family, which is credited with setting up the entity that today is known as Fonterra.

Also within their near billion dollars asset pile is a big chunk of formerly New Zealand, but now Australian, agro-chemicals company, Nufarm, which recently closed factories in New Zealand.

The Australian Financial Review in March reported that Nufarm was the subject of Chinese takeover speculation after the chairman of one of China’s biggest glyphosate producers, Zhang Hua, informed the Australian Securities Exchange he, and British Virgin Island companies he controls, had bought a 5% stake.  The Sanford move comes just ahead of woefully belated radical changes aimed at forcing international fishing boats to end controversial employment practices, forced on a reluctant government thanks to pressure put on by academics and journalists, such as Field.

The shakeup will end foreign charter vessel fishing in our 4 million square kilometre exclusive economic zone.

Charter vessels took 42% of the national catch between 1950 and 2010 but Field says the industry is uneasy about a soon-to-be-released academic study showing that the total catch of fish over 61 years was 2.1 times greater than was reported.

“Industry insiders believe the report, compiled by experts from three major universities as part of a global study on fisheries, will lead to a radical overhaul of New Zealand’s fish quota system, including substantial cuts in the quotas awarded to fishing companies, which determine how many fish they can catch,” the Nikkei report says.

Maruha has a long record of involvement in New Zealand waters, but it had no equity stake in the domestic industry until purchasing the stake in Sanford, which has a market capitalization of $543 million.

The sale, at a small discount of $5.68 per share against the current price of $5.73, is all the more perplexing because Sanford, which has had a number of lean years due to the crazily high New Zealand dollar value, is poised to benefit from a series of “tailwinds” according to market analysts.

The prospects for the first half of this financial year and for the full year are “very positive”, according First NZ Capital’s Sanford analyst, Kar Yue Yeo.

“Buoyed by a more favourable NZD/USD and lower fuel prices, our expectation is for Sanford to deliver an earnings before interest, tax, depreciation and amortisation of $38 million.”

That would be up 12% on the 2015 year and the highest since 2009, Yeo says.

“As a major aquaculture operator and owner of fish quota in NZ, Sanford is a beneficiary of on-going growth in global demand for protein and potential increase in seafood prices.”

Maruha Nichiro told Field it had no strategic reason for taking a Sanford shareholding and said it had no intention to increase its stake and “no political motives, such as expanding fishing rights” in taking a share.

Sanford said that while the company had enjoyed a “business relationship … with Maruha Nichiro over many years” the request for the Japanese company to buy shares “came from a shareholder” and not from Sanford. The Goodfellow family did not respond to a request for comment.

Glenn Simmon, a research fellow at Auckland University’s New Zealand/Asia Institute who is an expert on New Zealand’s fishing industry, said it was difficult to know what objectives Sanford and Maruha were pursuing. “The ownership of the fishing industry is hugely complex and nothing is as it seems,” he said. “We can only wait and see what happens.”

Sanford in its annual report said it had 49 vessels and 210 aquaculture farms for mussels and salmon. It holds 23% of the total New Zealand fishing quota.

Field’s book, published in 2014, was the result of years of study documenting the “slaves” who work in inhumane conditions for virtually no money for companies that send them out in re-named, re-flagged rust-buckets to, as the subtitle puts it, to “plunder the oceans”.

New Zealand was shown in the book to have been a major enabler of slavery at sea by allowing foreign vessels that didn’t have to comply with our labour and safety laws to fish domestic quota.

The complicity of the government in this is similar to the current Panama Papers scandal that has exposed how New Zealand foreign trusts are allowed to base here with no obligation to pay tax on offshore earnings. Indeed it would be no surprise to find the foreign fishing companies making use of this rort as well.

(Simon Louisson formerly worked for The Wall Street Journal, NZPA, Reuters, The Jerusalem Post and was most recently a political and media adviser to the Green Party)

 

14 comments on “National Party President selling out? ”

  1. save nz 1

    +100

    Interesting that Nufarm has been sold to Australia – NZ companies being hocked off before our eyes and our NZ companies being closed without anyone noticing.

    No wonder governments like to concentrate on taxing the middle class, the billionaires related to government are just getting a free ride and richer and richer, taking more NZ companies off shore and makes the National party NZ tax haven status make sense now.

  2. MikeG 2

    I don’t understand this sentence:
    “The largest shareholder, Amalgamated Dairies, with around a third of the company, is also a company controlled by the Goodfellow family, which is credited with setting up the entity that today is known as Fonterra.”

    Wasn’t Fonterra created by merging Kiwi Dairy, NZ Dairy Group and NZ Dairy Board?

    • Frank Stark 2.1

      This from NBR’s Rich List on the Goodfellows:
      The Goodfellow family has been credited with pretty much kick-starting the New Zealand dairy industry as we know it – launching the cooperative model that is the basis of this country’s biggest company, Fonterra. It started under Sir William Goodfellow’s charge, then passed into the hands of his son, Douglas, who diversified family interests into fishing, food, finance, property, clothing and engineering. Following Douglas’s death, at age 97, last year – the mantle passes to his sons: Bruce Goodfellow and National Party president Peter Goodfellow.

    • Ian 2.2

      Don’t let the facts get in the way of a good smear.

  3. adam 3

    And this is just one of the reasons that the labour movement had a international out look. The Tory capitalist classes do, we should too.

    Once again thanks for a great piece Simon.

    • Chooky 3.1

      +100

    • RedLogix 3.2

      And this is just one of the reasons that the labour movement had a international out look.

      And the capitalists rushed to fill the vacuum we left.

      Another highly polished and professional contribution from Simon. We’re damned lucky to have someone of his calibre.

  4. NZJester 4

    Ways to make money from New Zealand.
    Step 1: Buy New Zealand company with a good reputation that is lacking a bit of cash.
    Step 2: Slowly start using the brand on cheaper made goods produced outside New Zealand.
    Step 3: Run the New Zealand plants into the ground with lack of proper maintenance.
    Step 4: Close the factory once it becomes to costly to repair, knowing a new Zealand company will not simply be able to buy it and start using it to compete with them.
    Step 5: Move all the brands out of New Zealand to countries with even cheaper labor and keep profiting from the good reputation of the product brand name that New Zealand spend years building up.

    The onshore part of the fishing industry has also been rundown and most of the fish just go directly out of our water without even coming to shore and value being added to them by processing.

    • save nz 4.1

      +1 NZJester

      Step 6, have faulty non New Zealand products wearing the NZ name and destroy the brand name of NZ as being good reputation with high standards.
      Step 7, Further destroy NZ brand for producers still producing in NZ so they go under.
      Step 8, Bring in TPPA and not be allowed to label country of origin and take the lowest global standard as the standard to meet. Big companies sue governments and small companies can’t compete with the complexity of global rules and larger companies buying up the country and companies to asset strip them.
      Step 9, The lowest global standard prosper as they have nobbled the higher standards companies and choices and brands for consumers. The race to the bottom has ended and the .1% own everything and consumers just have a monoculture of choices.

  5. Stuart Munro 5

    “Captain, captain. What’ll you give me,
    If I do sink the Sanford Reverie,
    If I sink her in the low down, lonesome lowdown,
    Sink her in the low down lonesome low.”

    • Andrea 5.1

      For Stuart: Absolute grief in the courts on any charge that has less adhesive than a sticky note, until your family is broken, you’re bankrupt, [RL: Deleted. Banned for one week], your name is mud and even WINZ won’t give you a pittance.

      ‘Bring it on…’

      • Stuart Munro 5.1.1

        Your comment is pretty incoherent, but for the record I was in deepsea fishing. My life was ruined and there is absolutely nothing left you can do to me. But Sanford were not implicated in my professional demise – they are merely a parallel pool of extreme scumbaggery.

        1% of Japan’s fishery returns and employment – and clowns like these are the reason why.

  6. Brian 6

    Yeah, their pretty guilty. Especially after the most recent court case.

    http://postimg.org/image/mtrh6wegx/

  7. Brian 7

    Remember that a big slavery case – or case for unpaid wages – has now been one.

    And Sanford and very, very much complicit:

    http://postimg.org/image/mtrh6wegx/

Recent Comments

Recent Posts

  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kaipara Moana restoration takes next step
    A Memorandum of Understanding has been signed today at Waihāua Marae between the Crown, local iwi and councils to protect, restore and enhance the mauri of Kaipara Moana in Northland. Environment Minister David Parker signed the document on behalf of the Crown along with representatives from Ngā Maunga Whakahī, Ngāti ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand and Uruguay unite on reducing livestock production emissions
    Agriculture Minister Damien O’Connor and Uruguayan Minister of Livestock, Agriculture and Fisheries Carlos María Uriarte have welcomed the launch of a three-year project that will underpin sustainable livestock production in Uruguay, Argentina, and Costa Rica.  The project called ‘Innovation for pasture management’ is led by Uruguay’s National Institute of Agricultural ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 3100 jobs created through marae upgrades
    Hundreds of marae throughout the country will be upgraded through investments from the Provincial Growth Fund’s refocused post COVID-19 funding to create jobs and put money into the pockets of local tradespeople and businesses, Regional Economic Development Minister Shane Jones and Māori Development Minister Nanaia Mahuta have announced. “A total ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Health volunteers recognised in annual awards
    Health Minister Chris Hipkins has announced 9 teams and 14 individuals are the recipients of this year’s Minister of Health Volunteer Awards.  “The health volunteer awards celebrate and recognise the thousands of dedicated health sector volunteers who give many hours of their time to help other New Zealanders,” Mr Hipkins ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community COVID-19 Fund supports Pacific recovery
    The Minister for Pacific Peoples, Aupito William Sio says a total of 264 groups and individuals have successfully applied for the Pacific Aotearoa Community COVID-19 Recovery Fund, that will support Pacific communities drive their own COVID-19 recovery strategies, initiatives, and actions. “I am keen to see this Fund support Pacific ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community benefits from Māori apprenticeships
    Up to 50 Māori apprentices in Wellington will receive paid training to build houses for their local communities, thanks to a $2.75 million investment from the Māori Trades and Training Fund, announced Employment Minister Willie Jackson today. “This funding will enable Ngāti Toa Rangatira Incorporated to provide its Ngā Kaimahi ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Training fund supports Māori jobseekers
    Rapidly growing sectors will benefit from a $990,000 Māori Trades and Training Fund investment which will see Wellington jobseekers supported into work, announced Employment Minister Willie Jackson today. “This funding will enable Sapphire Consultants Ltd. to help up to 45 Māori jobseekers into paid training initiatives over two years through ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruakura Inland Port development vital infrastructure for Waikato
    The Government is investing $40 million to develop an inland port at Ruakura which will become a freight super-hub and a future business, research and residential development for the Waikato, Urban Development and Transport Minister Phil Twyford, and Māori Development Minister Nanaia Mahuta announced today. The funding has been has ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Appointments made to Defence Expert Review Group
    Defence Minister Ron Mark announced today the establishment of an Expert Review Group to review a number of aspects of the New Zealand Defence Force’s (NZDF) structure, information management and record-keeping processes.  The Expert Review Group’s work arises out of the first recommendation from the Report of the Government’s Inquiry ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • No active community cases of COVID-19
    There are no active community cases of COVID-19 remaining in the country after the last people from the recent outbreak have recovered from the virus, Health Minister Chris Hipkins said today. “This is a big milestone. New Zealanders have once again through their collective actions squashed the virus. The systems ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Clean energy upgrade for more public buildings
    More public buildings will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. Minister Shaw announced that Lincoln and Auckland universities will receive support through the Clean-Powered Public Service Fund to replace fossil fuel boilers. Southern, Taranaki, and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Schools back donations scheme for the second year
    More schools have opted in to the donations scheme for 2021, compared to 2020 when the scheme was introduced. “The families of more than 447,000 students will be better off next year, with 94% of eligible schools and kura opting into the scheme,” Education Minister Chris Hipkins said. “This is ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruapehu cycle trails gets PGF boost
    The spectacular Mountains to Sea cycle trail in Ruapehu District will receive $4.6 million in funding from the Provincial Growth Fund for two additional trails, Regional Economic Development Minister Shane Jones announced today. “This is an exciting development for the local community, and one that will provide significant economic opportunities ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Update to air border order strengthens crew requirements
    Additional measures coming into effect on Monday will boost our defence against COVID-19 entering New Zealand through the air border, Health Minister Chris Hipkins said today. “As part of our precautionary approach and strategy of constant review, we’re tightening the requirements around international aircrew,” Chris Hipkins said. The COVID-19 Public ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • A true picture of Māori business activity
    A better picture of the contribution Māori businesses make to the economy will be possible with changes to the way information is collected about companies and trading enterprises. Māori Development Minister Nanaia Mahuta and Small Business Minister Stuart Nash have announced a new option for Māori enterprises who are part ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • PGF funding for Taranaki projects
    The South Taranaki museum, a New Plymouth distillery and a Pasifika building firm will benefit from a Government investment totalling more than $1 million, Regional Economic Development Minister Shane Jones says. The $1.05m in grants and loans from the Provincial Growth Fund (PGF) will help the recipients expand and create ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Fijian Language Week 2020 inspires courage and strength during COVID-19 pandemic
    The Minister for Pacific Peoples, Aupito William Sio says the theme for the 2020 Fijian Language Week reflects the strong belief by Fijians that their language and culture inspires courage and strength that is strongly needed in times of emergencies, or through a significant challenge like the global COVID-19 pandemic ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Trades training builds on iwi aspirations
    An investment of $2.025 million from the Māori Trades and Training Fund will support Māori to learn new skills while making a positive difference for their communities, announced Employment Minister Willie Jackson today. “K3 Development Limited Partnership will receive $2,025,000 for its Takitimu Tuanui apprenticeship programme, which will support the ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Conservation Minister plants two millionth tree in Raglan restoration
    A long-term conservation project led by the Whaingaroa Harbour Care group in the western Waikato reaches a significant milestone this week, with the planting of the two millionth tree by the Minister of Conservation Eugenie Sage. “Planting the two millionth tree crowns 25 years of commitment and partnership involving Whaingaroa ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Seniors – our parents and grandparents
    International Older Persons Day is a chance to think about the individual older New Zealanders we know and to confront ageism, Seniors Minister Tracey Martin said today. “What happened around COVID-19 is a reminder that our over-65s are a very large and diverse group of people and we need to ...
    BeehiveBy beehive.govt.nz
    3 weeks ago