Winston Peters: New Zealand First leader on his regulation threats to Fonterra

New Zealand First leader Winston Peters has doubled down on his criticism towards Fonterra's plan to sell Mainland and Anchor to the French company Lactalis. 

In an open letter to the company Peters threatened new regulations if the sale goes ahead.

ACT leader David Seymour hit back saying the decision should be up to the farmers, not the Government, a sentiment echoed by Prime Minister Christopher Luxon on Monday. 

Peter's claims the letter was not a threat and he did not intend to interfere with the farming community or Fonterra.

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Episode Transcript

Speaker 1 (00:00):
Now New Zealand First leader Winston Peters has doubled down

(00:03):
on his criticism of Fonterra's plans to sell its consumer brands.
He's threatened in an open letter that Fontira may face
regulations if Mainland and Anchor are sold to the French
company Lactalise in Winston's with us now high Winston, Hello,
what regulations?

Speaker 2 (00:20):
Well, they have over many, many years and last in
twenty twenty one, again a monopoly position because politicians saw
in the national interest. And when that position is then
used to sell a product, the base product with no
guarantee of longevity that is only three years for the

(00:43):
brands that we have built it since the eighteen eighties,
then it's a matter of serious concern. The farmers need
to know that.

Speaker 1 (00:50):
Now apparently I'm told the three years is not strictly accurate.
It's three years that they have to take the milk
for and then after that it's another thirty six months
notice pure if they want to stop. So it actually
works out at six.

Speaker 2 (01:02):
Years automatically revenus until it's terminated as executive flim Flan.
After three years they can cancel.

Speaker 1 (01:11):
Yeah, but then they have to give three years notice.
So it really is six years, isn't it.

Speaker 2 (01:15):
Well, once you're canceling, guess what that signals to the
farming community. Your long term advantage is being lost dramatically.
You're now a wholesaler, You're not an added value operation.

Speaker 1 (01:26):
Now, what are the regulations that you're threatening.

Speaker 2 (01:30):
Well, I'm just saying that they did not get there
without coming to Parliament for this priviose position, than to
sell it as though it's some sort of catalyst asset
against the national interest, against added value to the wealth
of this country and to the employment of thousands and
thousand of people in's country. Is simply open to questions.

Speaker 1 (01:51):
Have you actually thought about what the regulations are or
are you just floating the idea that there may be
some regulations.

Speaker 2 (01:58):
It's not complicated. Let me tell this sounds common.

Speaker 1 (02:02):
You can't answer the question, Yeah, of.

Speaker 2 (02:05):
Course I can answer the question on the Well, I
don't know why. Why haven't you Peel been asking them
since they made that.

Speaker 1 (02:13):
It's not my first rodeo. I know what you're up to.
You haven't thought about the regulations yet?

Speaker 2 (02:19):
Yes I have. I'm saying we're gonna we're gonna remove
your privileged position, so that if a New Zealand wholesale
I wished to go and too added belly supply, they'll
have access to the milk that they are currently denied.
All right now, isn't really proplicated?

Speaker 1 (02:36):
No, no, thank you for answering the question. I should say,
thank you, thank you for answering the question. I do
appreciate it. Is it really that big a deal though,
with the milk supply, I mean we're talking about what
is it like seven and a half percent of the
country's milk that lacked lisee ends up taking.

Speaker 2 (02:49):
Oh again, again, that's not where we're really talking about.
We're talking high end, top end. And if you go
to Scandinavia, you go to Switzerland, if you go to France,
if you go to countries that know how to add value,
they have and many of those countries not even got
the raw product, but they're getting the base product and

(03:09):
adding value to it massively, and that's why they are
doing so better than us.

Speaker 1 (03:14):
But Fonterra would argue that they are doing value add
with all the other weird stuff that they do, like
the protein, the protein and the sports drinks and all
that stuff that's really value add.

Speaker 2 (03:25):
Oh, with the greatest suspect to Fonterra. Look, they went
through the being made disaster. That was not eight and
eighty million dollar loss, The opportunity cost was one point
four billion. They rent both and the very same people
coming on radio and TV, not Fonterra. But these people
being dragged out now were the very people who were
heading the organization when that happened. This is serious stuff, Okay.

Speaker 1 (03:46):
Now, David Seymour has a good point though, doesn't he.
It is actually for the farmers to choose, not for politicians.

Speaker 2 (03:52):
There's exactly right for farmers to choose, knowing all the facts. Yeah,
and I'm talking about the future young farmer, the son
and daughter. They are now on their ground tourdren. But
not you.

Speaker 1 (04:01):
You're not making it for the farmers to choose. If
you start threatening regulation, you're really making it. You're inserting
yourself here.

Speaker 2 (04:08):
I'm not inserting myself. But it was they that came
to us and asked us for protection and for privileged
position and monopoly. Do you not realize I've been around
for a long time, I've seen this. Ponterra was established
on that basis in the first place.

Speaker 1 (04:21):
Now, listen, can I just ask you about the fairies?
Are you worried at all about this lot building the
fairies over in China and what they're up to, the
potential threat?

Speaker 2 (04:30):
Oh? Look, one mainstream media genos arsinad and I said,
have you've flown eddies in lately? Well? They both they
buy from Boeing. Boeing makes military aircrafts as well.

Speaker 1 (04:39):
Yeah, but Boeing's on our side, isn't it. The Americans
are on our side. If we're going to war, We're
not going to war with the Chinese. It's like we're
fighting in the Chinese.

Speaker 2 (04:47):
Every item of this matter will be carefully scrutinized by
capable people for the first time in a long long time.
When the deal is done. The Chinese know that.

Speaker 1 (04:58):
Do you really think that we have the capability if
they put vulnerabilities in the fairies? I'm not saying that
they are, but if they did, do you really reckon?
We can find it?

Speaker 2 (05:08):
Of course we can.

Speaker 1 (05:11):
How can we find it? We have guys from the
defense forces who hand their notes into the op shop
in the valley.

Speaker 2 (05:17):
Well, that was a very very low grade woman who
went home with her notes. She was only a note
taker and left it at home. This is not a
high operative inside the defense Force. And more importantly, we're
not the third one largest rocket launcher in the world
at this point in time because we got there by accident.

(05:38):
Have some confidence in your people and it will hire
the right people. The difference is when this dealer is over,
we will have saved you and your listeners over two
billion dollars.

Speaker 1 (05:47):
Please to hear at Winston. I'm thrilled. I actually maybe
I should have more confidence. I appreciate your time. That's Winston,
Peter's New Zealand First Party leader. For more from Hither
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