Smith StuartSTUART SMITH (National—Kaikōura): Thank you Madam Chair. Thank you indeed. I'd like to turn the debate to the profits à prendre. I'd have to say during the Estimates debate I actually asked Ministers including the one in the chair Eugenie Sage about why profits à prendre didn't include other industries—the carve-out for the forestry industry. I didn't get a satisfactory answer. In fact from the Minister of Agriculture the answer was that Well we'd hope the wine industry got a greater return per hectare than forestry." There is no basis on that so I've got a series of questions I would like to ask the Minister.What papers went to Cabinet including profits à prendre in the Overseas Investment Amendment Bill? I'd like the answer to that. I'd like to know those papers. What analysis was done of foreign investment in other industries such as viticulture that utilise profits à prendre? What analysis of foreign investment in forestry and other industries comparing to forestry about foreign investment was done to help make those decisions to have a carve-out of forestry and not other industries? I'd really appreciate that answer.I'd like to inform the committee what the benefits of foreign investment by way of profits à prendre actually bring. The wine industry in 2000 had exports of $100 million. In June exports from the wine industry cracked $1.7 billion. That increase in exports was totally driven by access to market and that was much helped by foreign investment. So profits à prendre are able to be utilised by way of a foreign wine company getting access to New Zealand land and planting grapes on that and then being able to build their market. Why is that more important than just leaving it to the local market? Well unless anyone's got out there and worn a bit of shoe leather out on the streets—and I'm looking around the Chamber and I don't think I've seen anyone else across the Chamber out on the streets in foreign countries trying to sell goods—you require access to market. It is hard work and it requires those routes to market. That is what foreign investment brings.Those foreign companies often have links into distribution companies in other countries which they may well own shares in and those distribution companies one thing they want is surety of supply. How do you get surety of supply? You control the value chain—that's how you get it. Or you at least have a shareholding and a stake in every step through the value chain in order for you to guarantee supply to ensure that you're at the head of the queue so that that wine—in the case of wine—finds its way into the market at a good price and on time.Now I don't see in the forestry example an industry that's already 72 percent foreign-owned—what is the special case about forestry? I've asked the Minister in the chair for some answers to questions which might help inform the committee about what that decision-making process was but I fail to see how there is a special case there. It is a heavily foreign-owned industry as it is. They say they want more trees planted. Well you know that's great. We do but we want quality investments in there. We don't need access to market in the same way through forestry. I agree we need heavy investment in forestry but what's different from that to other New Zealand industries?Horticulture: you could easily make the same case for apples and for the apple industry. You could make the same case for a number of industries. How do we reach further up the value chain? We do that by having investments through the value chain and unless you get out there and walk around the markets and try and sell stuff around the world then I would find it very difficult to explain it to members across the Chamber who haven't had that experience to really understand how markets work in the international market place.We have in the wine industry a fantastic example of an industry that takes a primary product—a grape. It processes it adds value to it puts it into a wine bottle and actually achieves a higher market price in the world than other countries. If you take champagne out of the equation it is the highest-selling industry in the world."