I wish to register my concerns regarding the proposal by Livestock SA to assume the administration and direct control of the Sheep and Cattle Industry Funds.
While there may be some merit in consolidating some of the administrative functions the proposal to invest the control and allocation of funds with an industry advocacy body (Livestock SA) should not be accepted by sheep and cattle producers.
These statutory levies are currently collected under the control of the Primary Industry Funding Schemes Regulations and overseen by an independently appointed board, and as such still remain the final responsibility of the government and the minister.
Livestock SA should honour their commitment, made in 2020, when they committed to "delegate full decision making and financial authority to the Sheep and Cattle Industry Boards" in respect to the management and disbursement of the funds as required by regulations.
They also committed to assisting industry to establish an independent board.
The SA Sheep Advisory Group was established in 2000 under my chairmanship by Minister Kerin and consisted of government, producer associations and independent industry representatives.
This SA initiative, to collect and administer the distribution of industry levies, has served livestock producers with distinction for over 20 years.
Its operation has been the envy of other Australian states and producers and should continue to be overseen by a truly independent Board.
Robert Ashby AM,
Walkerville.
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In support of Ian Rowett's letter with the concerns and facts of Cattle Industry Fund (CIF) and Sheep Industry Fund (SIF) boards.
I was the chair of CIF when then-Minister Whetstone gave us the opportunity to privatise the boards that had previously been run under PISRA. It was believed the industry funds had been used as a government cash cow.
It was recognised that Industry should take the steps to put the CIF under the umbrella of SA Dairyfarmers' Association and Livestock SA.
This led to them provided banking, board members insurance and the supply an executive officer for the boards, paid for by the funds. A process for a selection panel was put in place to select delegates to the board. The new board started in 2020 and has been able to attract quality members.
The main purpose of the Board was to manage the levies collected from the sale of NLIS tags.
Under the management plan the Board directs how the money can be spent. It pays for the running of the NLIS database and other things such as the Johnnes program.
The plan also allows the funds to assist funding the advocacy organizations of SADA and LSA, but importantly having the reserves available to help manage a disease outbreak if one was to occur.
In the last four years I believe CIF has been running the best in the 12 years of my time being there.
In the last 18 months there has been rumblings from the advocacy organizations, which has incidentally coincided with the splitting of LSA and SADA sharing resources.
Costs have increased for SADA and LSA by not having shared premises and employees, this was beyond the control of the CIF.
We now see LSA claiming that CIF and SIF are only sub-committees of LSA (and SADA), which is incorrect as they were originally set up to be independent boards.
The CIF Board runs under the Cattle Industry Board charter which LSA and SADA boards delegate full decision making to the CIF board in respect to management and disbursement of the funds as outlined in the Primary Industry funding schemes (cattle industry fund) regulations.
Under the term governance in the Cattle Industry Fund Board Charter, the CIF Board reports to the LSA and SADA Boards and is supported by the Executive Officer. Recommendations made by the CIF Board will be upheld by LSA and SADA. The LSA and SADA Boards are committed to assisting Industry establishing an Industry fund board and not to control or dictate the process.
It is my belief, LSA have now broken the agreement they signed off under the Cattle Industry Fund Charter and are planning to combine the CIF and SIF Boards into a one sub-committee.
They have offered SADA a share of the cattle levies in line with dairy numbers and I believe unfortunately SADA have seen the dollar signs and accepted it.
LSA will be totally controlling the funds from the livestock levies collected from all producers, so it could be seen as compulsory unionism, which is something I thought I would never see in the farming fraternity.
I'm terribly disappointed to read the article by president of Livestock SA, Joe Keynes, in the Stock Journal after he personally signed off to help formalise CIF and SIF, so in that article I question whether he has destroyed his credibility of where he stood in 2019 in forming the Boards and signing off on them.
I believe the result of the proposed changes will be for LSA to totally control the expenditure of the farmer paid levies.
I would like to urge livestock producers to make sure SIF and CIF structures are protected to ensure arm's length management of the industry funds is maintained.
Lyndon Cleggett,
Glencoe.
