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Explosive papers reveal media gag at AWI

20 Oct, 2008 05:05 PM
Explosive documents detailing the serious breeches in board confidentiality and the well-known division in the boardroom at Australian Wool Innovation have been tabled in an embarrassingly candid Senate Estimate hearing in Parliament House, Canberra today.

Included in the documents tabled were the minutes from board meetings from the past 10 months which expose the level of division on the board over mulesing.

The documents detail a censure motion against director, Chick Olsson, reprimanding him for his "lack of reasonable care and diligence when making public comments that relate to Australian Wool Innovation", according to minutes from late June this year.

Those minutes include a proposed resolution to force Mr Olsson's resignation from the board of AWI because of a perceived "sustained campaign" against the company, which were not seen in the best interests of the company or the wool industry.

Minutes from a board meeting held in December last year and tabled with the Senate committee also reveal the board had agreed unanimously to a policy that only the chairman and chief executive officer were to speak on behalf of AWI following concerns raised by the then chairman, Ian McLachlan, about board confidentiality and director conduct.

"The chairman asked for an immediate commitment from all directors that the only place for disagreement is inside the board meeting room and not outside the board meeting…noting the urgent need for the board to work together as a team," the December 2007 board minutes read.

Board minutes from September reveal attempts by Mr Olsson to have current chairman, Brian van Rooyen replaced were defeated.

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Date: Newest first | Oldest first
Resign Chick Olsson...if you have one shred of decency.....how could anyone vote for the AWGA candidates knowing that this is what they get up to?
Posted by Sir George, 20/10/2008 4:25:57 PM
'Sir George' seems to forget that Chick Olsonn was elected to the AWI Board by a significant proportion of woolgrowers, who in all probability, still have his support. In other words, the bitter division within the AWI Board is merely a reflection of the bitter division throughout the entire wool growing industry. If there is any doubt, one only has to read the comments that appear on this webpage. Problems such as drought and low prices are not as threatening to this industry as is the level of division currently being witnessed. There is no way we can be viable in the highly competitive textile industry if we have no united industry front. Possibly the only way to overcome this is to have a true representative body that focusses on strategic issues, rather than get bogged down with day-to-day operational matters for growers such as how and if we mules. For instance, the AWI Board should have promoted the general issue of 'ethical treatment' of sheep rather than put a stop watch on the sorts of things that occur in our own stock yards. Put another way, the current Board cannot differentiate between macro and micro management, and is therefore incapable of providing much needed unity and direction.
Posted by Bob, 20/10/2008 5:51:16 PM
This continues to highlight the pack of incompetents that are leading the wool industry. The strategic plan that was published only reinforces the slow death of the industry under these people. They all should be dismissed and new blood sourced. There has been no push to modernise the selling system by AWI or so-called farm groups. All we hear is pathetic bleating from vested interests, brokers and buyers, how to prolong the auction system, not even considering adopting computer selling to bring it into the 21st century. It must be remembered that the whole of the stockpile was bought out of a catologue! Unless there is a radical change in all levels of the wool industry, it will rapidly fade into oblivion.
Posted by jerangle, 21/10/2008 6:06:47 AM
John Keniry's reported criticism of "agripolitics" in the boardroom seems to have forgotten that he himself owes his appointment to the management of wool to our politicians. There have been many terrible errors in the management of wool over the last 20 years. AWI's contribution to these errors was in the management of the mulesing problem, principally in their gross overreaction to PETA's campaign against Abercrombie and Fitch with a lawsuit which cost us a lot of money, did not prevent PETA from continuing their campaign, and gave PETA a seat in the management of our industry.

This lawsuit was engaged at a time when promotion of wool was not part of AWI's brief. PETA's actions were not AWI's business anyway. That lawsuit was an unmitigated disaster, the result of unpardonable errors of judgement. It may yet come back to cost us dearly in further litigation.

Because of that lawsuit and the "agreement" with PETA which has put it on hold, AWI must not do any act which might hinder the total cessation of mulesing by 2010. Never mind that for many growers this will be impossible, never mind that AWI might even acknowledge that it is impossible. AWI stands bound, hamstrung, by that agreement.

That agreement prevents AWI from acting in the best interests of its shareholders.

The reported actions of the AWI board to gag board members look very much like an attempt to ensure that the knowledge of the nature of these errors does not get out to the shareholders.

Posted by Ted O'Brien, 21/10/2008 6:33:42 AM
resign Chick Olsson
Posted by kavena, 21/10/2008 7:55:53 AM
Hang in there Chick
Posted by Judas, 21/10/2008 10:10:17 AM
The compulsory funded 2% woolgrower levy should be a voluntary levy . This would soon remove the AWI parasite from our backs.
Posted by Exam, 21/10/2008 10:37:04 AM
Here we go again squabbling again. The rest of the world really enjoys how producers and growers see each other as the competition when it really is another country. I guess I will die wondering why. Unity what unity?
Posted by Interested observer, 21/10/2008 11:20:10 AM
Chick Olsson and AWGA canditates have recieved and will continue to recieve my full support including voting entitlements.
Posted by Dr Bob, 21/10/2008 11:48:08 AM
Dr Bob...you interest me strangely...Look at the issue from the outside. AWGA are a group against everything and for nothing...The last time AWGA controlled AWI, they squandered money like you would not believe...yet you just blindly give them your vote...how do you get to this point? Not trying to be funny - I just can't see how a rational person can back such a disgraceful group...
Posted by Sir George, 21/10/2008 7:32:59 PM
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One of the dozens of AWI documents tabled in parliament today
One of the dozens of AWI documents tabled in parliament today
Related Coverage
ARTICLES
POLL
Q: Who will receive your first vote in the AWI board elections?

Brian van Rooyen
(19.7%)

George Falkiner
(14.1%)

Chris Abell
(3.8%)

Will Roberts
(7%)

Ken Boundy
(1.6%)

David Webster
(7.8%)

Robyn Clubb
(3.5%)

Meredith Sheil
(12.7%)

John Keniry
(5.4%)

Laurence Modiano
(24.3%)

Total Votes: 370
Poll Date: 19 October, 2008

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