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DIRA Review Brought Forward

DIRA milk may soon be a thing of the past, with Agriculture Minister David Carter announcing a review of the legislation for March next year.

Under the Dairy Industry Restructuring Act, Fonterra is obliged to supply up to 50 million litres of raw milk per season to any competitor who asks for it.

Fonterra has long opposed the rule, saying it is effectively subsidising its rivals.

The move to a March review contradicts a decision earlier this year.

In August David Carter deferred a decision on DIRA milk, setting a new trigger at a Fonterra market share of 80 per cent.

Labour Agriculture spokesperson Damien O’Connor says the Minister has bowed to pressure in fast tracking the review.

"It’s a classic case of the minister firstly being captured by his officials, and then being pressured by Fonterra and the farming sector to review those regulations earlier than he stated.”

David Carter also used question time in Parliament this week to cast doubt over the November 2011 target for Fonterra’s capital restructure launch.

Mr Carter says the November 2011 goal is ambitious, and farmers should know delays are a real possibility.

“Legislation will be required to now initiate Fonterra’s Trading Among Farmers.

"The Government’s very supportive of the move, but it will require substantial policy development before the legislation can be introduced into the House.

"The timeframe is very tight with Fonterra wanting it to be introduced before November next year, I think it could be delayed, there’s a lot of work ahead.

"It’s only fair that dairy farmers know that it’s tight, and if there’s anything that pops up unforeseen, we might not get the legislation passed before the next election.”

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