Saturday, September 1, 2012

Landcorpse

With the latest results from Landcorpse, I see that communism is well and truly alive in NZ.

122 farms.
77 people in a shiny head office looking after 1.6 farms each on average.
As the wage bill is $42,000,000 for the total 599 employees at an average of $70k each, it is of little wonder that the return to the taxpayer is woeful. When the shed hands will be getting $40k there is obviously a lot of fat in the system and I don't mean milk solids.

Each farm has a $100,000 + millstone around its neck.
Any genuine farmer would soon point out the (un)sustainability of that madness.

Sell the lot on an individual basis and let real farmers run them.

14 comments:

The Veteran said...

Asset sales anyone?

homepaddock said...

"Landcorpse" - of that it was.

Veteran - sell yes, but not the company as a whole. Far better as Lou says to sell the farms individually.

Adolf Fiinkensein said...

Presuming each farm has a manager, the only salaries permitted should be the equivalent of consultancy fees for each farm. Would they run at $5k per unit? I make that $6.1 mil.

There's $36 mil to add to the dividend.

Gavin said...

Sell them to the Chinese who can then bring in Filipinos to run them. Use the proceeds to build irrigation schemes for dairy farmers. That way everybody wins! Good thinking Lou.

The Veteran said...

Homepaddock ... each individual farm is an asset of course ....

Lou Taylor said...

Those are your thoughts Gavin not mine.We have a country full of genuine farmers so why the hell would we sell to the Chinese.All Landcorpse has ever achieved is to help push the farm prices up to a point where genuine farmers cant afford to compete on an even playing field. Paying millions to bum polishers in Wellington to "run" farms and produce flash reports is the last thing this country needs. Maybe the Chinese will end up owning them all but only because they will be picking over the corpse of our own stupidity.

Mort said...

Landcorp is hopeless, and the farms should be sold off if only to improve the productivity of the farms in question. The overall tax yielded from the farms in question once sold into private ownership will adequately compensate for the reduction in any off farm salaries lost.
The suit attired 'farmers' of the terrace may start to produce something more what they current produce.

The only problem with selling the farms is the $500m achieved from the sales is the equivalent of 10days overspending, and so the money will be wasted. If the money were reinvested into 10-15 irrigation schemes, then the increased productivity arising out of the projects should result in the gov't getting their money back every 3rd year. If one of the studies about the dam and outflow project designed for Tasman is true, then the productivity of the Waimea plains should triple, which would result in a doubling of the farm labour required. As productivity increases generally mean increases to the bottom line, on would expect the gross profit of the farms/ orchards to improve immensely, ultimately resulting in increased tax takes, not to mention the PAYE increase and the concurrent reduction in WINZ payments.
If a small hydro-electric scheme is attached to each project then the net ROI will increase proportionately.
The country would be a winner all around.

Noel said...

Veteran said "far better to sell the farms indivudually".

Hold it isn't Landcorp an agriculture management and operating SOE of mostly lease land.
So how can you sell the farms individually?

Gee check you facts before spouting.

Noel said...

Veteran said "Asset sales anyone?"
Wasn't it the National Government that allowed the sale of the Crafer farms with the proviso it be managed by LandCorp?

Adolf Fiinkensein said...

Noel you are a prize dumbarse.

It is no more difficult or easy to sell a leasehold property than it is to sell a freehold property.

How the hell to you think high country sheep stations have changed hands during the last one hundred and fifty years?

You sell the leasehold title.

Noel said...

Sorry Hitler forgot the word Crown.
Landcorp Holdings Limited holds selected properties under an agreement with the Crown, with these properties deemed “sensitive” in relation to public policy issues. The properties cannot be sold by Landcorp and continue to be farmed until required by the Crown.

Anonymous said...

Noel
I believe that trying asset sales of "properties deemed sensitive in relation to public policy issues" would induce more wrath than the current debate on "ownership" of water.
In short it will never happen.

Anonymous said...

Who then is the "prize dumbarse"?

Noel said...

Your'e not throwing it back at Adolf are you? LOL