Little Andrew: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeLittle Andrew: Oral Questions — Questions to Ministers[Sitting date: 15 March 2016. Volume:712;Page:9650. Text is incorporated into the Bound Volume.]3.ANDREW LITTLE (Leader of the Opposition) to the Prime Minister: Does he stand by his statement that New Zealand is on the “cusp of something special”; if so did he mean a thousand dairy farmers being forced off their land?Rt Hon JOHN KEY (Prime Minister): Yes. In answer to the second part of the question the member is mistaken. As Dairy New Zealand said this morning possibly around 5 percent of farmers right now are under pressure from having high cost structures and high debt; that is around 500 farmers. That is quite different from being forced off their land and a number of groups are supporting them through their current challenges.Andrew Little: Is the 10 percent of dairy farmers that he said could soon be forced off their land part of the “something special” that he predicted?Rt Hon JOHN KEY: I did not say that and there is not a quote to support it.Hon Members: You did.Rt Hon JOHN KEY: No I did not.Andrew Little: Does he agree with Federated Farmers that banks should pass on the recent official cash rate savings to struggling farmers?Rt Hon JOHN KEY: Of course we encourage banks to pass on cuts in the official cash rate where they can do so but as we know it is a very complex issue in terms of the way they fund themselves. But by definition if the banks are going to follow what Andrew Little is saying today that would mean when the official cash rate goes up they forcibly will have to pass on those increased costs to every homeowner around the country. That just shows you how ignorant Andrew Little is when it comes to banking.Andrew Little: In light of that answer and statement of the obvious what action will he now take to ensure that banks pass on those official cash rate savings to help stop our farmers being forced off the land?Rt Hon JOHN KEY: This is what the Government is doing to ensure farmers can stay viable: reform the Resource Management Act signed the Trans-Pacific Partnership (TPP) agreement ensure that there is irrigation schemes to support them and support the Primary Growth Partnership. And this is what the Labour Party is doing: it is opposing all of those. It wants to have more tax on farmers through the emissions trading scheme more water taxes a capital gains tax—Chris Hipkins: I raise a point of order Mr Speaker. The Leader of the Opposition’s question was a relatively specific one. The Prime Minister has danced around it and has not got to it and has instead launched a tirade of abuse against the Labour Party. Could he perhaps answer the question now?Mr SPEAKER: I do not agree that the question has not been addressed in the answer that has been given but where the answer was then leading to is not going to help the order of this House.Andrew Little: In light of the Prime Minister’s statement about the TPP can I just clarify: is he seriously saying that tariff savings worth less than 7/100th of 1 percent of current dairy debt is going to save the dairy sector?Rt Hon JOHN KEY: Comparing subsidies that farmers have to pay with dairy debt is about as relevant as when Stuart Nash thought that the dairy farmers should have to pay tax on their revenue not their profit which by the way when Labour was not trying to pretend that it was the friend of the farmer was exactly what it was doing: charging them more taxes charging them a capital gains tax a water tax more for the emissions trading scheme worse for health and safety and opposing everything that would help them.Andrew Little: When offshore banks here are already making almost $90 million in profit each week why should they pocket extra money while forcing farmers off the land?Rt Hon JOHN KEY: Firstly the member is saying that they are forcing farmers off the land. What I can see is banks are actually working constructively with farmers. It is not just my view; Dairy New Zealand has said exactly the same thing today. In fact the chief executive officer of Dairy New Zealand said: “I have been speaking to farmers as you’d expect over the last few weeks. I haven’t heard one of them saying that there should be a bail out.” We know that the banks are working with the farmers because actually it is not in their interests to force them off the land.Andrew Little: Why should New Zealanders accept offshore banks hoarding interest rate cuts and forcing our dairy farmers off the land so those farms also end up in offshore hands?Rt Hon JOHN KEY: If the member is wanting to say that all banks operating in New Zealand should fund themselves solely on local deposits and should not use the international swaps markets to fund themselves he is even more stupid than the public think he is.Ron Mark: Reflecting on his earlier answer is he seriously telling farmers who are in negotiations with banks and creditors and unsecured creditors right now that this wonderful Trans-Pacific Partnership (TPP) agreement which will not come into force for what—Mr SPEAKER: Order! Bring the question to a conclusion.Ron Mark:—the next 5 10 or 15 years or reforms on their Resource Management Act are going to save them tomorrow; is that what he is saying?Rt Hon JOHN KEY: What I am saying is that there are certain things that the Government cannot control: the exchange rate international commodity prices the weather—these are three things we cannot control. What we can control are the direct on-farm costs and this includes helping them through the Resource Management Act making sure they have got irrigation to off-set droughts and actually yes when dairy farmers pay $100 million extra in tariffs it does affect them. When they pay potentially $100 million into Sri Lanka it does affect them. If the member does not think so he should go and speak to the management of Fonterra and see what they think when they get a reduction in the tariffs they pay.Andrew Little: Will he just level with me for a moment and tell me whose side is he on New Zealand dairy farmers or the overseas-owned banks?Rt Hon JOHN KEY: I am on the side of New Zealanders 365 days of the year. I am not on the side of farmers today but by the way Stuart Nash wanted to tax them more. Others on that side of the House wanted higher health and safety costs. These are the people who do not want irrigation schemes do not want the Resource Management Act reform and do not want free-trade agreements. This is a joke. These people are not the friends of the farmer; these are the people who try to put them out of business. [Interruption]Mr SPEAKER: Order! I have a point of order and it will be heard in silence.Dr David Clark: I raise a point of order Mr Speaker. When I raised previously with you the issue of misrepresenting Labour’s position you referred me to Standing Order 359. The Prime Minister just referred to the Labour Party being opposed to free trade which is patently untrue. I am wondering—I have written to you on your advice and I am wondering when I might receive a response to my letter.Mr SPEAKER: I am very surprised that you have not already received a response. It went from my office at about 11 o’clock on Thursday to say that there was absolutely no case of misrepresentation in this House on that particular issue.Rt Hon John Key: I seek leave to table the TPP so that the Labour Party can sign it.Mr SPEAKER: No. Order! Leave will not be put. The document is right in front of the Prime Minister. It is available to all members.