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Wool levy stays at 2pc
19 Nov 2003
Wool growers have reportedly voted to retain the 2 per cent levy. Although WoolPoll has yet to formally report the ballot results, it's believed there was a strong vote in favour of the 2 per cent option. Vote organisers said that about 19,000 of Australian Wool Innovation's 49,000 shareholders participated. But the ballot was able to record a 50 per cent vote, based on one vote per $100 of levy paid in the three years to June 2003.
The levy is likely to generate much less revenue than in original projections. These estimated a 470 million kg clip and average eastern market indicator price of 950 cents, providing levy income of $52 million. When added to a projected $13 million government contribution and $5 million of other sources, this would have provided AWI with a total income of $70 million.
But this season's clip is likely to be fewer than 450 million kg and the EMI is struggling to average 800c/kg clean, so the levy income will be less than $40 million. This will leave AWI with a $57 million budget.
Weekly Times, 19/11/03, page 2.
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