10. Farming—Cost IncreasesHon NATHAN GUY (National—Ōtaki) to the Minister of AgricultureFarming—Cost Increases10. Hon NATHAN GUY (National—Ōtaki) to the Minister of Agriculture: Does he stand by all of his statements and actions?Hon DAMIEN O'CONNOR (Minister of Agriculture): Yes.Hon Nathan Guy: Did the Prime Minister tell him that she wants to receive advice from the Farming Leaders Group for free and not his Primary Sector Council which costs taxpayers $500000 a year?SPEAKER: Order! The member will resume his seat. The member will rephrase the question so it relates to the primary question.Hon Nathan Guy: Did the Prime Minister tell him that she wants to receive advice from the Farming Leaders Group and not his Primary Sector Council?SPEAKER: Order! The member will resume his seat. The member's going to have one more try to ask a question which relates to the primary question.Hon Nathan Guy: Is the Minister aware of the fact that the Prime Minister has said to him that she would prefer to receive advice from the Farming Leaders Group rather than his Primary Sector Council?SPEAKER: I'm going to let the Minister answer it but I will say to the member that even then strictly I shouldn't have.Hon DAMIEN O'CONNOR: No.Hon Nathan Guy: When he was referring to cost increases on farmers reported in Rural News on 21 August as saying get used to it" what specific advice has he received on these Government-increased costs?Hon DAMIEN O'CONNOR: I have been upfront with farmers all the way through. We have said that we will require higher standards in water around the rural properties and I'm sure that farmers just as they have been committed to this for some time appreciate that they have to reach a higher standard. The swimmable-level standard offered by the last Government was quite frankly pathetic and they knew that and they understand that they've got to spend more money to reach swimmable standards that are truly credible.Hon Nathan Guy: In light of that answer what specific advice has he had from officials that is going to confirm to farmers that there are going to be increased costs from this Government?Hon DAMIEN O'CONNOR: What I can say is that we are rolling out a programme moving from volume to value and indeed focusing on the values of New Zealand production. We're being honest with the farming sector saying that we do have to have higher standards of animal welfare we do have to have higher standards of environmental management and we do have to pay our workers more so we can attract more people to the primary sectors. That will be an additional cost but this Government's focused on farmers getting more value for what they do now—more returns not just asking them to do more. Hon Nathan Guy: In light of that answer why can't he be more specific on what these increased costs are likely to be? He has already indicated that—SPEAKER: Order! Order!Hon Nathan Guy: The Minister—SPEAKER: The question all right?Hon Nathan Guy: Yes. Why can't the Minister be more specific about these increased costs like he has already alluded to the fact that bringing agriculture into the emissions trading scheme (ETS) will cost on average $5000 per farm; what further advice has he had about these increased costs? He must have had advice—SPEAKER: Order!Hon DAMIEN O'CONNOR: Happy to Mr Speaker.SPEAKER: No it is—Hon DAMIEN O'CONNOR: Oh please.SPEAKER: The member will resume his seat. We had three cracks at the first supplementary and that one was just wandering all over the paddock.Hon Nathan Guy: What specific advice has he had from his officials in terms of numbers—dollars—that farmers can expect his Government to see increased costs on their business?Hon DAMIEN O'CONNOR: I'm trying to be absolutely honest with them and I can't predict the cost that the meat companies or the dairy companies may impose upon farmers to meet new standards of assurance. What I can say in regard to climate change is that there are no set figures but I am using figures off the basis of Lincoln University predictions. There are no decisions on whether to bring agriculture into the ETS. But off the figures developed by Lincoln University they estimated that it could be around $5000. That's the figure that I've quoted publicly. I'm happy to explain. It's a guesstimate at best and we're working through the process to be absolutely upfront and honest with all the farmers across New Zealand."