A RECOMMENDATION Western Australia's sole voice on the Australian Wool Innovation (AWI) board in David Webster be retained, has been rejected by two WoolProducers Australia (WPA) directors from WA.
Pingelly sheep and cropping farmer and a previously unsuccessful AWI board nominee John Hassell and Kojonup sheep farmer and WAFarmers vice president Steve McGuire, both WPA directors, said they believed board renewal was more important for WA's wool industry future than having a WA-based director on the board.
On Monday AWI announced its Board Nomination Committee (BNC) had reviewed and interviewed eight candidates for three board positions and recommended Mr Webster, who has been on the board since 2008 and controversial former chairman for 10 years and a director for almost 15 years Wal Merriman, be returned as two of the three.
Neither Mr Webster nor Mr Merriman would be eligible to seek another term had AWI adopted a 10-year cap on directors' board tenure as proposed by Ernst Young (EY) last year after its statutory review of AWI's performance and governance.
The 10-year director cap was one of five, out of a total of 82, EY recommendations that were initially scheduled to be put to an extraordinary meeting of AWI shareholders in March this year because the board believed AWI's constitution required a vote of shareholders.
However, in March AWI announced an extraordinary meeting would not be required because it had reached a "consensus" agreement with WPA - its vocal major critic - on four of the five issues.
The proposed 10-year cap fifth issue remains unresolved.
On Tuesday Mr Hassell said he believed "it is crucial we get new faces on the AWI board".
"To me, that is more important than WA retaining its existing voice on the board," Mr Hassell said.
"We need directors who have skin in the game making decisions in the best interests of woolgrowers.
"I have a problem with specialty skills directors that do not have a direct interest - other than a director's fee - in the wool industry.
"Former Prime Minister Paul Keating had a wonderful statement that I firmly believe applies.
"In a two-horse race back the horse called vested interest."
Mr McGuire said he believed "board renewal" was more important than a WA representative at the board table.
"A need for board renewal was one of the things to come out of the EY review, how can you have renewal when the BNC recommends two of the three directors remain the same?" Mr McGuire said.
"Also, the BNC has recommended four people for three positions, how does that work?
"It's a ludicrous situation.
"Basically AWI has ignored important recommendations from a review costing more than $900,000 aimed at improving transparency and governance and the BNC's recommendation is a rejection of the Agriculture Minister's attempts to reform AWI," he said.
Mr McGuire said it was disappointing there was no "fresh" WA candidate.
"If we can achieve board renewal this time around then perhaps WA woolgrowers might feel more inclined to put their names forward at future elections," he said.
Mr McGuire urged woolgrowers to log on to the AWI website and use a link there to register as shareholders.
Only shareholders, not wool levy payers, can vote either in person or by proxy at the November 22 AWI annual general meeting in Sydney on the director elections.
Mr Webster has chaired AWI's finance and audit committee for the past nine years and is also a director of the Australian Wool Testing Authority.
Much of his working life was in woolgrowing, livestock and cropping enterprises in the Great Southern where his family still farms.
He is no longer actively involved in farming and is chairman of a Mid West iron ore exploration company.
Mr Webster and Mr Hassell and Mr McGuire were on different sides of last year's wool levy debate.
Through Farm Weekly Mr Webster argued for the status quo two per cent levy and urged levy payers to think "very carefully" before voting for a lower option at WoolPoll.
Mr Hassell and Mr McGuire campaigned very strongly for the 1.5pc levy option that was ultimately successful, with strong support from WA woolgrowers believed to have got that option across the line nationally.
The BNC's recommendations, which are not binding, will be provided with the notice of meeting which will be sent to AWI shareholders from October 21 ahead of the annual general meeting.
Apart from Mr Webster and Mr Merriman, the BNC also recommended new candidates Dr Michelle Humphries, founding director of Livestock Breeding Services at Jerilderie in the New South Wales Riverina and Noel Henderson, a first-generation wool grower and co-owner of Avington Merino stud, Sidonia, Victoria.
Also nominated as director candidates but not recommended by the BNC are former AWI directors Paul Cocking and George Falkiner, along with new candidates Phil Holmes and Dr Janelle Hocking Edwards.
Mr Cocking is a sheep producer from Mangoplah near Wagga Wagga, NSW, and founder of Riverina Wool Testers and Mr Falkiner owns Haddon Rig Merino stud at Warren, NSW.
Mr Holmes, now based on the NSW South Coast, has 40 years' experience as a veterinarian and a farm management consultant.
Dr Hocking Edwards is a director and hands-on manager of her family's property near Lucindale, South Australia, which produces finewool Merinos and crossbred lambs.
She also has had a notable career as a livestock scientists and researcher.
The BNC, expanded as a result of the EY review, comprised of independent chairwoman Dr Mary Corbett, independent industry representative Simon Cameron, managing partner from an international executive recruitment firm Guy Farrow and AWI directors Dr Meredith Sheil and James Morgan.
Dr Shiel, who was first elected the same year as Mr Webster, is the third director whose current term ends at the annual general meeting but she intends retiring from the board.
In a statement the BNC said it was confident the candidates recommended, individually and collectively, would provide the necessary balance of skills required by the AWI board.
"The BNC also considers the nominations will deliver to the board a diverse composition of experience and outlook to enable the company to fulfil its responsibilities to shareholders and stakeholders and deliver the outcomes of the 2021 Strategic Plan," the statement said.
But WPC president Ed Storey slammed the lack of transparency in the BNC's recommendations.
"The issue that we have is that the BNC recommendations went to the AWI board without being made public first," Mr Storey said.
"That, coupled with the fact there has been no reasoning behind the recommendations, means the whole process is questionable," he said.
"WoolProducers raised our concerns over the lack of transparency of this process with both the Department of Agriculture and (Agriculture) Minister Bridget McKenzie's office over the past few weeks, who have done nothing.
"All WoolProducers has ever wanted from our research and development corporation is to be transparent and accountable to their compulsory levy payers," Mr Storey said.
