Baldock Larry: Meat Board Restructuring Bill — First Reading 
Baldock Larry: Meat Board Restructuring Bill — First Reading 
[Volume:615;Page:11033] 
LARRY BALDOCK (United Future) 
: 
 I rise on behalf of United Future to support the first reading of the Meat Board Restructuring Bill. I believe that this bill is a sensible and proper response to the request by the Meat Board for reform of its institutional structure. The overarching objective of this restructuring is based on the realities of international competition and best practice. Reconstituting the organisational structures and processes of the meat industry will help to ensure not only that its ongoing success within an increasingly tight global marketplace will be enhanced but also that the chance of it being sustained will be greatly increased. 
New Zealand’s distance from international markets together with a highly competitive playing field demand both a level of prudence and initiative. These two traits have been clearly exercised by the Meat Board and farmers alike by way of recognising the need for institutional change to better their ability to compete and manage their collective cause. For this I congratulate both parties on their instructive in the finished product as detailed in this bill before us today. 
Some may question whether the Government should play a part in the residual statutory board. When it comes to the question of the country’s specific tariff quota the necessity for Government involvement is both proper and justified. The significance of such quotas is not bound to any one industry. Their importance transcends micro-benefits and affects the economy at a macro level. They are important to the economic well-being of the country as a whole and as such should be seen to serve the national interest above and beyond the interests of a particular industry. 
A Government role in the board will ensure that the issues regarding the administration of the country’s specific tariff quotas will be addressed with due consideration given to the best interest of the country as a whole. A board consisting of only industry-elected officials may result in a greater potential to view any development opportunity or issue within the prism of their respective industry. This bill ensures that the chances of this happening are greatly reduced by the retention of Government involvement and United Future supports this. 
This bill will help to bolster our competitive advantage internationally by improving conditions for growth and innovation. In order to remain in the lead pack we must ensure through legislation that the structures put in place perpetuate conditions that allow innovation and growth to flourish without undue restraint. This bill will foster such conditions by improving efficiency. Any concerns of wavering efficiency over a prolonged period should be allayed by the bill’s provision for compliance audits of the board’s quota management systems. I am happy that these new 3-yearly audits will ensure a benchmark of efficacy of enforcement systems. By measuring standards of efficiency against our country’s international treaty obligations efficiency performance will not be a factor in the demise of international competitiveness. Moreover these audits will impose upon the board a heightened level of accountability to the Crown to ensure appropriate standards are maintained. 
There is however one issue relating to the new audit regime of which we must be watchful. This issue concerns the provision that allows the Minister to seek an unscheduled audit at any time. Although I understand the conceptual rationale behind these audits I wonder whether a clear reason-to-act provocation guideline should be drawn up—such guidelines that enable the board to set parameters in their duties to ensure that certain lines are not crossed. I put it to the House that it would be only fair for the auditing authority to communicate clear and applicable terms of reference as a guiding doctrine of best practice. Surely this would be in the best interests of all parties concerned and would go a long way to ensure that efficiency and operational success are sustained. 
United Future supports the ongoing management of industry reserve funds by the residual board. Notwithstanding the large amount under management and mindful that these assets ultimately belong to livestock farmers it is comforting to see that the bill provides for constraints on the management of these reserves. This check and balance will ensure that the board can mobilise funds only for certain reasons framed within certain broad-based best-for-industry activity. This is a judicious and responsible control of funds that honours the primacy of the farmer in the industry. It will create both a hedge for times of crisis and allow the industry to weather periods of distress that may impact on the vigour of the industry. 
It is vital that the Meat Board in its deliberations not only takes an inclusiveness approach but also is seen to act in such a manner. Perception matters nearly as much as reality. Not only will goodwill and ongoing support be offered by farmers if consulted but it will also convey to the board an awareness of the practical effects of their decisions on the farm. The gains from having a single entity are plentiful. The new organisation will be better able to position itself as an authoritative body on pastoral issues. It will be better able to provide the impetus for healthier farm profit. A single organisation will be better able to influence relevant trade policy and dealings with key markets. A new revitalised Meat Board will have a raised public and institutional profile giving more leverage to champion agricultural causes. 
The flow-on effects of this raised profile are clear and beneficial to both the industry and the wider economy. The quality of recruitment across the board will improve and an environment that promotes innovation will be crafted. The organisation’s contribution to the economy will be more recognised compliance costs will be kept at a more manageable level and the new organisation will be better positioned to leverage more Government funding as needed. Let us not forget that the backbone of our economy still lies in the hands of those who work the land and they are facing a mountain of issues that must be climbed in order for our country to move forward. To name but a few issues: sheep and beef farm profit is down 17 percent the rising exchange rate is eating away at profit there is a need to secure footholds in new beef markets in Asia and there is the spectre of a host of biosecurity threats that could devastate the industry at any time. 
This bill will go a long way in managing the risks faced ensuring operational efficiency improving the administration of the quota system and promoting the best interests of both the industry and the country. Once again I am pleased to confirm to the House United Future’s support for the first reading of the Meat Board Restructuring Bill.