4. Question No. 4—AgricultureTEANAU TUIONO (Green) to the Acting Minister of AgricultureQuestion No. 4—Agriculture4. TEANAU TUIONO (Green) to the Acting Minister of Agriculture: Is the Dairy Industry Restructuring (Fonterra Capital Restructuring) Amendment Bill consistent with her Government's commitment to addressing the global climate crisis; if so how?Hon MEKA WHAITIRI (Acting Minister of Agriculture): On behalf of the Minister yes. This bill allows Fonterra the ability to change its capital structure and this will help to drive investment around sustainability and innovative dairy practice. Farmers are already putting in the work to measure the emissions improve freshwater quality and increase sustainable practices on-farm. This reflects the broad programme of work that the Government is undertaking to support farmers to reduce their emissions in line with our climate change commitments. The benefit of a high-performing and efficient Fonterra will flow through its nearly 10000 farmer shareholders into our rural communities and it underpins a well-functioning sustainable dairy industry. Teanau Tuiono: What evidence if any does the Minister have that freed-up capital will go towards sustainability measures on farms rather than towards increasing milk production? Hon MEKA WHAITIRI: Because the Government has a project of reducing emissions that they have worked on very closely with the industry: He Waka Eke Noa. There are commitments from farmers; this bill will not remove the expectations that we reduce our emissions. This is purely a bill to enable Fonterra to move capital and to invest in sustainable practices that many dairy farmers are already undertaking. Teanau Tuiono: Then why was no climate implications of policy assessment produced for the bill despite the Ministry for the Environment raising concerns that the proposals would support an increase in emissions? Hon MEKA WHAITIRI: The bill regulates as I said the operation of New Zealand's dairy industry and Fonterra's capital structure. It does not make changes to environmental regulations or climate action but rather relates to decisions on who farmers may choose to supply milk to. What we know is that Fonterra and its farmers are working to improve practices and reduce emissions and Fonterra's capital restructuring will enable farmers to redirect capital that would otherwise have been required for share purposes to these ends. Teanau Tuiono: Does the Minister think it is fair that Fonterra's proposed capital restructure may make it more difficult for dairy farmers facing the effects of climate change to pursue land-use change and if not why not? Hon MEKA WHAITIRI: The bill allows Fonterra the ability like I said to change its capital structure and it relates to decisions on who farmers may choose to supply milk to. Land-use changes have been a constant throughout New Zealand's agricultural history and it's driven by a number of factors. Ultimately if farmers are looking to move away from dairy that is a business decision for each farmer to consider. Teanau Tuiono: Does she believe it's fair for the Government to support Fonterra's restructure through legislation when this is designed to strengthen their monopoly and will have the effect of shielding them from the commercial realities of climate change? Hon MEKA WHAITIRI: I thank that member for the questions because the bill is yet to be presented to the House. But what I can say to that member is that there are some mitigating and transparency obligations in the bill which include a Government-appointed extra member to the price-setting panel and that is one way of ensuring transparency so they avoid any price-gouging and I look forward to that member putting in his submission when the bill reaches the House.