Lotu-Iiga SamNEW ZEALAND HORTICULTURE EXPORT AUTHORITY AMENDMENT BILLSecond ReadingHon Peseta SAM LOTU-IIGA (Minister of Local Government) on behalf of the Minister for Primary Industries: I move That the New Zealand Horticulture Export Authority Amendment Bill be now read a second time. The New Zealand Horticulture Export Authority Amendment Bill modernises the current framework for exporting horticultural commodities. It amends the New Zealand Horticulture Export Authority Act 1987. That Act enables smaller horticultural industries to collaborate in the marketing of their products overseas.The horticultural sector is a star performer. In the last 12 months it has grown by about 20 percent and the sector continues to grow. For example avocado export volume is forecast to double in the 2016-17 year.Before I talk about the bill in a little bit more detail I want to thank the Primary Production Committee and its chair for their hard work in considering this bill. I also want to acknowledge the valuable input that was given by the 10 oral submitters.The Act promotes the effective export marketing of horticultural commodities by enabling the industry to set grade standards for its produce and requiring exporters to comply with those standards. In controlling the marketing and export quality of the industry's produce affiliated product groups are able to develop a consistent brand for its produce. It also enables affiliated industries to leverage the benefits of New Zealand's clean green high-quality reputation. The Act does not create a single desk or monopsony exporter model and the Horticulture Export Authority itself is not an exporter. The Act preserves a multi-exporter model. For example there are 12 buttercup squash exporters and 21 summer fruit exporters. There are nine affiliated product groups currently exporting under this framework and their combined export revenue ending 30 June 2016 was over $282 million. The two largest horticultural industries operate outside this export framework—of course you know that they are pipfruit and kiwifruit exported by Zespri to all markets other than Australia.The changes in the bill will enable affiliated product groups to better target their marketing strategies to specific markets overseas. Better-targeted export strategies will support affiliated product groups to meet different demands in different markets and optimise their returns. The changes provide more clarity around the requirements for entering and exiting from the export framework. They also provide certainty as to how the authority and the product groups are funded to deliver on their strategies. When we look at clause 28 for example this clause formalises the current information sharing that occurs between the authority and the New Zealand Customs Service and between the authority and the Ministry for Primary Industries.The bill originally required the authority to consult with the Privacy Commissioner when developing such information-sharing agreements. I agree with the committee that the authority must also consult with the Privacy Commissioner when amending an already existing information-sharing agreement.Finally I support the committee's recommendation to add a new notification provision in clause 31. This will require the authority to formally notify the nominal fees it sets where the authority is given discretion to set fees within a maximum cap or by a formula through fees regulations created under this Act.I support the changes recommended by the committee as they will enable our horticultural producers and exporters to have the tools available to optimise these returns from their export markets. Most importantly they will continue to make significant contributions to growth of the New Zealand economy and the regions. I commend this bill to the House.