“Discussions about this topic have run hot and cold for years.
“We need some finality.”
The Stock and Station Agents Association has created a code of conduct and set up an independent body to adjudicate on complaints about the actions of stock agents.
“But with all respect to the association, membership and thus adherence to the code is voluntary and we understand it currently covers only about 65% of all stock transactions,” he said.
“Less reputable agents, a minority in the industry, are unlikely to become voluntary members and even if they do, when trouble arises they can simply resign and continue to trade,” Anderson says.
A fully enforceable and regulated industry could stop agents trading and potentially be able to impose redress.
As well as facing potential losses from fraudulent transactions, Federated Farmers members have raised concerns about biosecurity risks, where there is misrepresentation, either accidental or deliberate, and the limited ability to seek redress in a voluntary system.
Another potential regulation deserving debate is one requiring any stock agent trading livestock on their own behalf to do so through an auction system or another agent and not conduct the transaction on their own behalf.
“A lot of ill feeling is caused when a stock agent buys from a farmer when it’s not clear he is acting on his own behalf, keeps the animals on his property for a day or two then on-sells at a substantial profit.”
The Meat and Wool Council does not envisage an increased cost to farmers from regulation because most companies and agents would not see a huge change from how they operate with their own internal processes now.
“We are hoping for a positive response from the Government to support this.”
There will be some who try to tie the council’s advocacy for regulation to complaints made in relation to a former employee of a stock trading company in the South Island.
But irrespective of the Serious Fraud Office investigation into that it is well past time some sensible regulations were brought in to cover stock agencies, Anderson said.
“The vast bulk of stock and station agents operate in an exemplary manner.
“We need regulation to be fair, to give them protection as well, not just the farmers.”
