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RESOLUTION
3 May 2006
A top level wool industry meeting has agreed to establish a coalition
of wool industry
representatives to call on the Federal Government to urgently support
resolution of the UK
pension scheme legacy which is holding back the merger of Australian Wool
Services (AWS) and Australian Wool Innovation (AWI).
Convened by AWS at Wool House in Melbourne last week, the meeting was
attended by
Australia’s leading wool bodies including:
• AWS
• WoolProducers
• The Australian Wool Growers’ Association
• The Australian Superfine Woolgrowers’ Association and
• The Australian Association of Stud Merino Breeders
At the meeting, AWS Chairman Barry Walker tabled the operational restrictions
faced by AWS which constrain its ability to remain commercially viable.
“It is now well known that when AWS and AWI were established as
separate entities, AWS was given ownership of a UK pension scheme which
has become a multi-million dollar financial millstone around our necks,”
Mr Walker said.
“AWS has a legal obligation to maintain the pension scheme and we have been exploring our options but it has become clear that we need Government support to fix the problem once and for all.
“The current requirements of funding the UK pension scheme are
impeding our flexibility to
re-invest in the Woolmark and our other assets.”
Mr Walker said resolution would clear the way for integration between
AWS and Australian
Wool Innovation Ltd (AWI). Over the past twelve months, the two bodies
have held discussions and AWS has undergone two sets of ‘due diligence’
investigations for AWI.
“AWS Board and management have always been 100 per cent supportive of integration with AWI,” Mr Walker said.
“Our objective in all of this is to maintain a business structure which continues to deliver for all of our stakeholders while retaining the valuable AWS assets and investment in the Australian wool industry.”
Mr Walker said the unanimous support of Australian wool industry bodies
showed a
commitment to work together with AWS to resolve the UK pension scheme
for a result which is beneficial to all.
“There is terrific value in AWS,” Mr Walker said.
“We want to see the roles and the assets continue into the future,
“For the benefits of wool growers, our Woolmark licencees and industry
participants at all levels of the pipeline, we must solve the immediate
financial issues we face and look to a future which protects and capitalises
on our valuable assets.”
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