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 Merriman defends AWI against calls for abolition 

Merriman defends AWI against calls for abolition

05 Nov, 2009 11:23 AM
AN UNWAVERING Australian Wool Innovation chairman Wal Merriman stood firm on the AWI election process in the face of criticism from Liberal Senator Concetta Fierravanti-Wells, who has called for the body to be scrapped altogether.

While he would not be drawn to comment on the senators calls for abolishment, Mr Merriman reiterated his stance that he would not remove the “democratic right” of woolgrowers to determine their own industry leadership and representation.

“To suggest the current AWI board members were elected on anything other than their demonstrated skill in business, marketing, wool growing, wool processing, research and governance ignores not only their significant accomplishments in these fields but woolgrowers’ ability to acknowledge and value these skills,” he said.

“As part of the AWI AGM this year, woolgrowers have the opportunity to vote for a change to the AWI constitution and change the frequency of board elections from an annual process to every two years,” Mr Merriman said.

But executive director of the peak wool grower organisation, WoolProducers, Greg Weller, has called the proposed election rotation an ignorant move.

He has urged AWI to disclose its director salaries as it had in previous annual reviews. (See separate story).

In a letter to Rural Press this week, Victorian wool grower and former chairman Australian Wool Corporation, Hugh Beggs, also outlined the need for a new wool body.

“An industry structure beyond the farm gate is essential. However, the organisation set up to do this have not succeeded satisfactorily in recent times,” he said.

He also recommended that board of directors should be ministerial appointments – not elected.

Given AWI's statutory standing, change must be driven by the Government.

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Date: Newest first | Oldest first
Wally and Brenda have been running around telling everyone how bad the last mob was and how they have been slashing costs. Really? Well let's have a look at some facts.

Directors payments under Wally in 2008/09 have risen from $622k to $765k. That's a nice little increase of 23pc.

Key staff payments (normal salaries) have increased from $2.0m to $3.4m, again a nice little 29pc increase. Total employee expenses have increased from $17.7m to $20.6m, a modest increase of 16pc.

When you look at employee expenses as a proportion of revenue, the disaster that is AWI just becomes more apparent.

Employee expenses have increased from 19pc of revenue to 33pc of revenue under Wally's watch.

Facts. Simple. Straightforward. No Spin. Read the Annual Report.

Posted by Sir George, 5/11/2009 9:24:19 AM
The silent majority of wool levy voters are sitting back and taking stock of what the future holds as are the retailers that wool growers totally rely upon to display wool products.

Unfortunately AWI have not achieved the popular promises that the current board claimed would result from their election to the board. Not only have the AWI board failed to achieve but have failed to disclose their remuneration to achieve failure from shareholders in their annual report but now want to double their time to fail for up to six years before being subjected to shareholders approval.

Shareholders that support the continuation of this diabolical situation underpinned by popularity spin from AWI cannot expect a positive return on their investment.

Now is the time to wind this current AWI experiment up by voting zero levies and against all the AWI AGM polls and resolutions and start afresh!!

Posted by piece maker, 5/11/2009 9:38:16 AM
A bit rich complaining about directors fees rising in 2008/09 after the previous board appointed three extra directors in April 2008, and for a while there were actually 10 directors. At least its back to eight now.

My maths tell me directors fees have actually fallen: 2007/08 $622,000 and seven directors = $88K and in 2008/09 $765,000 and nine Directors = $85K

But you are right, costs need to be cut and redundancies cost more than they should.

Posted by Martin Oppenheimer, 5/11/2009 12:38:41 PM
A couple of our bloggers here are so steadfastly bitter, personal and destructive in their comment that they can now be readily described as enemies of wool. So much so that they must be stooges for somebody on the outside, maybe PETA.
Posted by Ted O'Brien, 6/11/2009 5:23:22 AM
I disagree vigorously with Wal Merriman's comments about the board being elected on the basis of their skills. Most growers would know they were elected on the basis of what they had promised - politics, plain and simple. Who on the board is a qualified accountant, for example? Who on the board has spent any time in retail marketing or major brand development and management? Boards are supposed to comprise highly experienced and diversely qualified people who can collectively bring that experience to bear on all manner of deliberations. The board wants to spend more of its money on marketing. Brenda will put up her proposals. Who on this board, or the previous one for that matter, has the in-depth experience or knowledge to critically test those proposals? It has been a highly dangerous formula from the start and we should not be surprised with the number of failed projects.
Posted by fact not fiction, 6/11/2009 5:42:04 AM
The whole structure of the wool industry is totally fragmented. What is needed is ONE all encompassing body that looks after marketing, market reporting, research, testing, selling, classing, classers etc. Ask the woolgrower to name all the associated bodies to AWI and none would have a clue. For example, who owns AWEX? This body was supposed to have been abolished in the McLaughlin report. It looks after market reporting and classing standards, yet the woolgrower can still not access a free market report from this mob. Then we have seen the ongoing waste of money with bale labels. For a long time they were duplicating certifications of core lines that AWTA carried out, more cost. If it is not too late, the whole structure needs to be dismantled and reconstructed into one body that controls all sections of the wool industry, and at the same time taking away the vested interests of the brokers by eliminating show floors, selling centers and the auction system. With all of this then maybe the wool industry can be part of the 21st century.
Posted by jerangle, 6/11/2009 5:53:46 AM
Maybe some of these negative bloggers should do a little more research before writting such nonsense. Mr Falkiner is a Harvard University business graduate. Mr Olson is a university accounting graduate. Dr Sheil is a qualified doctor and science graduate. Mr Modiano is university educated and one of the largest wool marketers in the world. Ms McGahan has a university business degree, and well respected retail experience... this is just a start fact not fiction...your name is a joke.
Posted by jim hawkins, 7/11/2009 6:53:40 AM

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Wal Merriman has reiterated his stance that he would not remove the “democratic right” of woolgrowers to determine their own industry leadership and representation.
Wal Merriman has reiterated his stance that he would not remove the “democratic right” of woolgrowers to determine their own industry leadership and representation.
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Total Votes: 526
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