Smith Stuart; Kuriger BarbaraSTUART SMITH (National—Kaikōura): Madam Speaker thank you for your patience. I would like to begin by commending the Hon James Shaw. I thought that was an excellent speech. I don't agree with his conclusions necessarily but he raised some very interesting points. I'd also like to acknowledge that his standing down from the leadership of the Green Party—I mean he's actually made a significant contribution to this Parliament and to New Zealand politics. I think that needs to be acknowledged and it will be at some point but I got in first so there you go. We haven't always seen eye to eye on everything James but I do absolutely respect you so I want to have that noted.I do agree with a lot of things that the Hon James Shaw said. The problem we have had is that the Productivity Commission actually came up with some really good reports. It did a lot of good work over its years and as I said earlier I have the highest respect for Murray Sherwin. But their problem is transferring those thoughts into actions and actually getting a result. I mean if we want a good example of productivity putting this bill to repeal the Productivity Commission through urgency is highly productive. We're doing it all virtually very very quickly. So that's one example of productivity but it's not what we're aiming to achieve.But the regulations ministry—and I know that that is not what we're debating as the Hon Grant Robertson has said but the reality is it is related. I remember very well in the term 2014-17 when Madam Deputy Speaker Kuriger and I entered Parliament the Hon Grant Robertson would ask questions at question time focused on our poor GDP per capita—productivity actually; our numbers—and they've not improved over time. It's not just down to a Government; it's been a long-term problem trying to get our productivity up. It's actually something we all have to acknowledge because we're all part of it.Earlier in the day Miles Anderson gave his maiden speech and he touched on the very issue about farmers and how farmers are disenchanted with the world and quite rightly so because they're being overwhelmed with paperwork. Now that paperwork has a noble end which is to ensure that the externalities that farming activity has are dealt with and minimised to the maximum potential for them to maintain their right to farm—their social licence to farm. I can't disagree with that one little bit and I don't think anyone in this House would agree with it. The problem is that we're actually plucking the goose so much that there's the maximum amount of hissing rather than the minimum amount. That's a real problem for us but it's not only a problem for us. We're seeing the same issue in France. At the moment Paris is blockaded by tractors which farmers have got in—Hon Dr Duncan Webb: Oh come on! How is this about this bill?STUART SMITH: This is productivity Duncan Webb. France is being blockaded by tractors because farmers have had it up to here with the paperwork that they have to do to ensure that they can maintain their place in their society and get the subsidies quite frankly that enable them to survive.We're seeing the same thing in Germany and it is also farmers who are the lifeblood—and actually we have to go back to World War II. The lack of food during that period through the Second World War—and the First World War of course played a major part in that—led to the formation of the European Union. They wanted food security and so they have ensured their food security by giving out subsidies to ensure that their farmers are financially viable.Now we can complain about that and quite rightly so because we're actually badly impacted by that. When the British joined the EU that had a significant impact on New Zealand's economy but they are building up their own lack of productivity in that sense. But this is a worldwide trend where costs are being added through needless bureaucracy. We need to get to the ends so there's a noble goal behind that sand in the gears that's going into our economy. But it is such a restraint that it is demotivating people to enter farming which is our major industry. In fact most New Zealanders don't realise how important farming and the primary sector is to their wealth and health quite frankly because there's a very close relationship between GDP life expectancy and wellbeing which after all seems to be a major driver from the other side of the House.The UK is in a similar position. They also have their farmers up in arms over the same issues. It goes way beyond farming. It goes into every sector in New Zealand. I really have already had a contribution towards the Hon David Seymour with his ministry when my local council came to me with an issue about productivity and the regulations that are about to start on 1 February. The regulations state what councils must only and cannot pick up for kerbside recycling. We have a whole lot of waste that goes into productive enterprise that can be recycled but they're now allowed to pick it up at the kerbside because that's the regulation. It's a crazy regulation. So we could get the Productivity Commission to write a report on that and that would be great. I'm sure they would look at it from all sorts of angles get a lot of information and do a great job but it wouldn't change the regulation and the regulation is the thing that's causing the problem. The regulations ministry will have the opportunity to be able to look at those sorts of things and ensure that we actually get on top of the issues that are causing our lack of productivity.There's a lot of investment needed to generate productivity as Catherine Wedd said earlier in the evening about the apple industry. Our apple industry is highly productive and it could be more productive with more investment in new machinery all sorts of—Catherine Wedd: With IP varieties robotics.STUART SMITH: Yes varieties and all the intellectual property (IP) involved in—actually like the kiwifruit industry coming up with their own IP around new varieties that are more attractive to consumers which is a great thing. But you could in fact breed new plant varieties that are less susceptible to diseases. Therefore they'd be more productive with lower costs and so on. But we don't get that from the Productivity Commission; it has come from industry itself. So we've got to find new levers.The lever of the Productivity Commission as we've already shown is not doing the job. They're very good people well intentioned—and agreement across the House. The honourable Minister as I've said earlier—the former Minister the Hon Grant Robertson—was very passionate about our poor productivity for years prior to becoming the Minister of Finance. We tried he tried and our productivity is well below our peers' and we must get it up. There is no option actually. If we don't get it up our best and brightest are going to leave our shores and go elsewhere and we can't have that. We've got to do our best to keep the best and brightest here. As it happens we've retained a large number of them on this side of the House. So with that I commend the bill to the House. DEPUTY SPEAKER: Just before I call the Hon Mark Patterson I just want to clarify a point under Standing Order 310. The main point is that amendments to the bill are limited to the principles and objects determined at the second reading so the Hon Grant Robertson is correct in that regard. Thank you.