It's Time To Be Pragmatic -- July 2019

I was visiting family in Sydney recently and, having thoroughly annoyed everyone with my lack of enthusiasm for shopping, was sent packing to the pub where I’d arranged to meet a couple of Twitter friends from Wellington.

Over the course of a few pints Hadyn, who was there for a Sony product launch, asked me how my politics had changed since I’d been on Twitter. He asked me this because I am a white, middle-aged male who votes to the right and the majority of people who follow and interact with me tend to vote to the left.

Maybe the third pint is the charm because I didn’t even hesitate with my answer, “I’ve become far more pragmatic” I replied. Maybe it’s age, maybe it’s being exposed to other people’s points of view, or maybe it’s plain old cynicism, but I no longer reflexively defend the blue team.

I’m more inclined to acknowledge when the Right does something silly or just plain dumb, though I’m far more likely to tweet about it when the Left mucks up because the reactions I get from the partisan lefties on twitter are hilarious.

I’m also far likelier to praise the red (and green and black) team if they get something right, or accept that they’re committed to doing something I don’t like and I just have to do the best I can to work with it.

As farmers we don’t like being told what to do with our land, our animals, and our businesses. We get grumpy and we tend to stick our toes in and fight, to let the people telling us what to do that we don’t like it and they can just bugger off. It’s part of who we are and, since Fonterra is a farmer owned and farmer run co-operative, it’s also who Fonterra have been since its inception.

Submissions have just closed on the Zero Carbon Bill and, like it or not, it will pass into law. We knew this government was committed to this legislation when the Prime Minister stood up and declared that climate change was her generation’s nuclear free moment. You don’t have to agree with her, but you do have to accept that she’s got the will and the numbers to make it happen.

I’m very pleased to see that, like me, Fonterra have a new found pragmatism. They could have reverted to type and pointlessly fought the government over this legislation; instead they have chosen to support the Bill and will seek to have some amendments, such as setting methane targets at the lower end of the scale, made at select committee.

I suspect that given their recent announcement to not install any further coal burners and to embed sustainability at the heart of the Co-op, Fonterra are well ahead of the curve as far as meeting the targets set in the Bill go.

I’m pleased too to see the Shareholders’ Council, who I have been critical of in the past, standing shoulder to shoulder with the Board in a joint press release about their submissions on the Bill. That press release highlighted the common ground they shared, their differences are there if you care to read their separate submissions, but those tensions are quite rightly being kept private between the Council and the Board rather than being aired publicly.

The Bill will pass, but having the support of New Zealand’s largest company will certainly make things a lot easier for the government. I can only hope the various ministers acknowledge the goodwill Fonterra are trying to build.

Fonterra’s Board’s first duty is to the health of the Co-operative, and the biggest threat I see at this point in time is the government’s failure to adequately reform DIRA. The current government certainly went further than the previous one in making changes to DIRA, but they went nowhere near far enough.

I understand that being pragmatic is about give and take, I just hope Fonterra have built up enough goodwill with present government for them to start giving too.