OPPOSITION

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December 16, 1996

ILA STATEMENT IN OPPOSITION TO
THE STEERING COMMITTEE DRAFT REPORT

The Board of Directors of the International Llama Association ("ILA") is opposed to the steering committee's draft report which was recently circulated for comments to the lama community. The steering committee has asked organizations and individuals "to tell us if we are on the right track."

The ILA urges its affiliates, other lama organizations and individuals to tell the steering committee it is off track and that it should address the mission assigned to it by LLAMA ASSEMBLY '96.

LLAMA ASSEMBLY '96 formed the Unification Steering Committee and gave it the following mandate and instructions:

"'Should we continue the unification process?' The ASSEMBLY was unanimously in favor of the question.

LLAMA ASSEMBLY '96 participants then carefully formulated this statement of direction:

'LLAMA ASSEMBLY '96 requests that one Board member each from ILA, ILR, ALSA, AOBA, LANA, RMLA and CLA meet as a steering committee to pursue the unification process.'

The consensus was in favor of the statement of direction; only five participants opposed the statement and one abstained.

The body, with three noes acknowledged then further directed

'That the steering committee shall reach agreement upon a unification plan to be presented at a Congress of empowered delegates.'

A final communication from Assembly participants to the steering committee stated:

'We wish to convey a sense of urgency.'"

The steering committee rejected its mandate and instructions and changed its name from the Unification Steering Committee to The Lama Steering Committee. It made no effort to "reach agreement upon a unification plan".

The draft report proposes the creation of a new National Trust Fund; the Trust Fund is unnecessary and unworkable. It is unnecessary because it would burden the lama community with the expense of an additional tier of government to deal with medical research and government relations when our community already effectively addresses these issues. Medical research has been generously funded by the ILA, its 25 affiliates, including AOBA, as well as LANA, CLA and RMLA. The Lama Medical Research Group ("LMRG") was formed by LLAMA ASSEMBLY '93 and is chaired by Dr. Art Kennel, who has done an outstanding job. The LMRG has developed priorities for research and has created an effective working relationship with the Morris Animal Foundation. The LMRG has reported each year to LLAMA ASSEMBLY and is widely praised for its work. The expenses of the LMRG have been paid by the ILA. The proposed new National Trust Fund will unnecessarily complicate a process that is already working well.

Over the years, government relations have been dealt with by the ILA and ad hoc groups. During the process of strategic planning, which the lama community has been engaged in these past three years, it has been widely recognized that the ILA has done a good job in dealing with problems at the state and national level and in developing, over several years, excellent working relationships with state and federal animal health officials. The steering committee's draft report also recognizes that the ILA leads the lama community in this area. Anyone who wants to participate in this work can do so by joining the ILA and working on its committees.

In our view, the proposed new National Trust Fund will add nothing to the process of dealing with government relations. Effective government relations requires good relationships and an ability to respond to crises. Our community has done well on both counts.

The Lama Strategic Planning Group reported at LLAMA ASSEMBLY '94 and recognized that our community needs renewable, reliable funding to support the work of our national service organization. The proposal for funding the new National Trust Fund turns this recommendation on its head by proposing to tax the ILA and its affiliates, as well as other organizations to support a new unnecessary tier of government. The ILA carries on its programs based on the generous voluntary contributions of its members. Taxing them to support the operations of the National Trust Fund Board will surely dry up support for the ILA. Recent experience suggests that the ILA affiliates, which have generously supported research, should not be asked to bear the burden of the proposed $2 tax. The proposal suggests that the ILR and ALSA, both of which have the power to tax lama owners, may be willing to contribute to support the national programs of the lama community. While it is refreshing that those organizations may be willing to make such contributions, a National Trust Fund is unnecessary; ILR and ALSA can make contributions directly to the Morris Animal Foundation Lama Research Fund, just as the ILA, many of its affiliates and other organizations have been doing.

Additionally, this proposal appears to be a non-starter because the National Trust Fund, as proposed, may not be able to qualify as a 501(c)(3) tax-exempt public charity under the Internal Revenue Code. If it is not so qualified, many 501(c)(3) organizations that are devoted to the well-being of llamas and alpacas will not be able to contribute to the National Trust Fund. If it is so qualified, the National Trust Fund will probably not be able to accumulate income and build up an endowment as is proposed nor will it be able to finance government relations.

Our opposition to this proposal is tinged with regret that the steering committee ignored the unanimous acceptance at LLAMA ASSEMBLY '95 of the Report of the Lama Strategic Planning Group and the overwhelming support at LLAMA ASSEMBLY '96 for the work of the Unification Working Group. The steering committee received its mandate and instructions from LLAMA ASSEMBLY '96 and it is regrettable that it refused to follow that mandate and its instructions.

The ILA urges its affiliates, other organizations and individuals to tell the steering committee it is off track.

International Llama Association
Board of Directors

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*** Letter from Dan Goodyear, Board Member ILA ***
and member of The Llama Steering Committee
serving on the Governance Sub-Committee.

To: Jack Moore, Chair
The Lama Steering Committee

From: Dan Goodyear

While you were president of ILA, an I was a relative new-comer to the board, I recall several conversations with you (both during board meetings and privately) about the necessity of pursuing merger discussions with ILR and ALSA. You seemed to be a real advocate of merger, with a strong sense of loyalty to ILA. I shared with you a number of experiences that I had had in merging businesses, and trade organizations. I believe it is because of my experiences, that you appointed me (I was never asked) to be the ILA representative to the lama Steering Committee during Llama Assembly '96. There was never any doubt in my mind, nor at the time, did I sense any doubt in your mind what the mission of the Steering Committee was ... we were to pursue merger discussions. I felt that this was the clear mandate of Llama Assembly '96.

With full knowledge that I was unable to attend the two most important meetings of the committee, (the first was due to a long standing conflict ... and the second was due to Dale's sudden illness which landed her in the hospital for nearly three weeks) I must strongly disagree with the direction of the TLSC! Fundamentally, I think the TLSC disregarded the direction given them at Llama Assembly and unilaterally developed its own agenda with out regard for the overwhelming sentiments expressed by the voters at Llama Assembly. It appears that merger was never really seriously addressed by the committee.

I personally think the formation of yet another tier of governance in our industry is unnecessary and will create just another bureaucracy which could further divide us. We desperately need unity, and unity naturally occurs during well managed consolidations.

I recommend that you present the findings of the committee at Llama Assembly '97. However, I think it is incumbent upon you, as chairman, to recognize all of the committee members. Disagreeing with the final draft, is no grounds to ask them to remove themselves from the committee.

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*** Letter from Vern Lillies, Board Member Canadian Lama Association ***

To: Jack Moore