Tuesday, January 29, 2008

Carter Defames Green Acres - Wong Talks Sense

It is pathetically sad to see the way Labour will use any group of unfortunates in a desperate effort to curry favour (did you get it?) with the electorate. Today Chris Carter unwisely opens his big mouth outside in the real world where parliamentary privilege doesn't exist.

Contrast this with the cool headed wisdom of National's Pansy Wong:-


"She felt the best way forward was for the police, the Commerce Commission and the Serious Fraud Office to pool their resources for the investigations and come up with with a conclusion swiftly."

Carter's assertion that Green Acres are exposed because the perpetrator of the fraud was working for them appears to me to be pretty thin. He bases his opinion on a phrase used on the company's website - .... "works with the franchise support office"......

I'm not a lawyer but I'd be surprised if he got very far with that one. If the villain of the piece was operating as an independent contractor (and I suspect he was) then Carter has Buckley's chance. In my own case I operate as a broker and I 'work with the underwriting departments of a number of life offices.' This does not make them responsible for any hanky-panky I might get up to on the side.

1 comment:

Les Stewart, MBA said...

As a Canadian I have no axe to grind with any political party in any country, including New Zealand.

I, however, founded the Canadian Alliance of Franchise Operators and am an expert on government's evading their duties.

Minister Carter, a history teacher by training, is telling a group of fraud victims that THEY should sue the franchisor. Really?

No competent lawyer in North America works on a contingency fee basis in franchising. There are no free lunches in this complex and costly area of legal services.

1. The banks were so eager to lend for fraudulent purposes that they did ZERO due diligence as a lending institution. Where I come from that's called "loan pushing" and predatory franchise lending.

The loans should be forgiven immediately before I sue them for offending common sense!

2. Where is the Franchise Association of New Zealand (FANZ) in all of this mess? They say they are the quality keepers of franchising but then again this franchise system was a "blue chip" one in Nov 2007.

3. Minister Dalziel's solution to this $5-million fraud is to go and consult with FANZ which represents only the interests of the franchise head offices (franchisors).

4. Suing a franchise company is a loser's game. Anyone heard of limited liability, intentional insolvencies and re-organizations, poison pills, etc?

5. The fraud happened simply because it could. Canada has had franchising laws since 1971: the U.S. since 1956. White-collar crime haven, anyone?

6. The real power in franchising is in the auto, grocery & petroleum product groups.

That franchising is the most lucrative form of commercial lending, makes the banks tend to drive the getaway car.

That +95% of the legal services in franchising are paid for by franchisors makes any "white knight" lawyer turn black pretty damn quick. There are more than 50 ways to sabotage your clients.

Maybe the PM Clark should put both of her ministers out of their misery and call an enquiry.

Mr, Les Stewart, MBA
Midhurst ON Canada

For more information, see Franchising Opportunism on http://www.bakersdelightlies.com/index.html