Carter David: Estimates Debate — In Committee 
Carter David: Estimates Debate — In Committee 
[Volume:656;Page:5631] 
Hon DAVID CARTER (Minister of Agriculture) 
: 
 I must express a bit of surprise and disappointment that the Opposition asked for Vote Agriculture and Forestry to be debated today but that no one from the Opposition seeks to make a call. I will make a couple of comments because this is an extremely important vote and there is a huge amount of work going on. 
The first comment I will make is around the economic recession and the fact that no sector of the economy is immune from its effects. I think the House needs to be well aware of the pressures on the dairy sector which has been hit quite hard by recent adjustments in the pay-out price. If we look at the Fonterra payout of $7.90 a year ago which is now readjusted to a predicted payout of $4.55 we can see that that obviously makes quite a difference to an important sector of our economy. The situation is a lot brighter in the sheep industry in that after years and years of very low sheepmeat prices we now see a real example of the resilience of our sheep-farming sector. The price has probably nearly doubled over the last few years. But again I give a note of warning to the Committee that many farmers particularly those in the Hawke’s Bay region have been struck by 3 years of drought. They have had 3 years of drought so they have actually destocked; in some cases they are down to half the previous stock levels. The prices for lamb production now may well have doubled but with half the number of ewes that those farmers had previously they are still facing a fairly dramatic time. 
My Vote Agriculture and Forestry involves doing a lot of work because there are a lot of challenging issues before us. One issue that is very much a focus of mine and a focus of this National Government is an intention to do something around the provision of water infrastructure in order to allow more irrigation. 
Hon Parekura Horomia 
: What about the pollen coming on to all the houses— 
Hon DAVID CARTER 
: I have spent quite a lot of time I tell Mr Horomia travelling around New Zealand. I am aware of water infrastructure issues in Hawke’s Bay Wairarapa Marlborough Nelson Canterbury South Canterbury and Otago and with some contribution from the Government some attention and support from the Government I think we can make progress in providing water storage and solve something that in many cases if we take Canterbury as an example probably should have been solved 100 years ago. 
We recognise the importance of science and innovation in the sector covered by Vote Agriculture and Forestry and I refer to the recent announcement in the Budget of the Primary Growth Partnership which involves a significant investment by central government of $190 million over the next 4 years capping out at $70 million a year on a dollar for dollar basis. When we consider that the industry is making a dollar for dollar commitment we realise that means there will be $140 million a year available. Why that is so important— 
Moana Mackey 
: If that doesn’t go the way of the tax cuts. 
Hon DAVID CARTER 
: —and Moana Mackey needs to realise this—is that with the challenges facing the sector from climate change we need to find solutions particularly when we consider the profile of New Zealand’s greenhouse gas emissions. It is absolutely critical that as a nation we put the money forward and find some solutions so that we can develop an emissions trading scheme that will be balanced around our environmental responsibility as well as economic matters. 
With regard to climate change again there is a huge amount of work to be done. I acknowledge that a review of the original climate change legislation that of the previous Labour Government is going through a select committee process in the Emissions Trading Scheme Review Committee. Hopefully the committee’s report on that legislation is going to come out. But this Government is determined to develop an emissions trading scheme that will balance the environment and the economy. 
Hon Steve Chadwick 
: Tell us about live sheep exports. 
Hon DAVID CARTER 
: I am only too happy to do so although I tell her that if she wanted to debate Vote Biosecurity which is what animal welfare comes under she should have put that down for debate. But I am still quite happy to make some comments particularly in light of the programme the other night. The images shown on that programme are unsatisfactory to all New Zealanders and I as the Minister would not be happy to see live exports going out unless we were absolutely assured as to both the transportation conditions of those sheep and probably more important the treatment those livestock will receive upon their arrival. I think that although we might satisfy a very small number of New Zealand sheep farmers by allowing such a trade it would be at the risk of jeopardising the whole of New Zealand’s meat export reputation. I as the Minister certainly do not intend to do that I tell Mrs Chadwick. 
I congratulate my department the Ministry of Agriculture and Forestry on the work that is being done. There is a huge amount of work to be done and there are some very very challenging issues to address. But as I am sure most people in the Committee certainly those on the National side of the Chamber realise this economy is totally dependent on the livelihood of New Zealand’s primary producers and if that sector is doing well then the whole of the economy will perform.