15 May 2013

Bill limiting outside investment in Fonterra fails

10:18 pm on 15 May 2013

Legislation that would impose a limit on outside investment in dairy cooperative Fonterra has failed to clear its first hurdle in Parliament.

The members' bill in the name of Labour MP Damien O'Connor proposed to put a 20% limit on the amount of Fonterra cooperative shares that could be sold by farmers into the company's shareholders fund.

The fund was set up in 2012 to allow investors to buy the dividend rights to shares that farmers deposit in exchange for their cash value.

The bill in its first reading was opposed by the National Party, ACT, Maori Party and United Future.