Media Releases

Performance Review Points to Structural Flaws in AWI — 3/9/2009

“Without a radical change to the governance procedures at Australian Wool Innovation (AWI) to bring it in line with modern practice, it is certain that growers will again be wondering what they have to show for their levies at the next performance review in 3 years time." 

That was the bleak assessment from peak wool grower body WoolProducers Australia (WPA) President Don Hamblin today, commenting on the 2009 AWI Review of Performance (ROP).

“The ROP has backed the longstanding position of WPA, that the company needs structural reform,” said Mr Hamblin. “It is clear that AWI just isn’t functioning like it should be, and that the problems are much bigger than the individuals in charge or a management approach.”

In identifying systemic problems within AWI, the authors of the ROP have recommended that AWI implement a skills based board, which is supported by WPA. The ROP states in the Executive summary:

“It is recommended that AWI, in collaboration with shareholders and industry stakeholders,conduct a review of the architecture for the appointment of directors in the Constitution,to ensure the election of a skills based Board.”

“A skill based board doesn’t mean that current or previous directors do not have the capacity to be there – but it does ensure that there is a diverse and complete set of skills on the board and it eliminates directors standing on political platforms each year,” said Mr Hamblin.

“To its detriment, the wool industry has for too long focussed on personalities and politics and ignored the fundamental problems built into AWI’s procedures since its inception.”

“AWI has been racked with politics for years, which takes energy and resources away from innovation and marketing activities. This goes right back to the politicisation of the board and the company straying into agri-political activities.”

“As a result, growers don’t know what they should be expecting from AWI and as the ROP points out, certainly have no way to judge its performance.”

In response to the ROP, WPA renews its call for the following changes to occur in AWI:

1. Introduction of a skills based board, with an independent selection process;
2. Limited terms for directors;
3. Formalised and improved reporting and consultation system with growers; and,
4. Development of a wide-reaching and robust definition of agri-political activity.  

“The time for serious change is upon us. We can’t go on doing the same old things for another three years and expect a different outcome at the end.”

WoolProducers Australia contacts:   
Don Hamblin (President)                  (h) 02 6833 4428       (m) 0429 334 428
Greg Weller (Executive Director)      (w) 02 6273 2531      (m) 0438 846 752