O'Connor Damien; Dyson RuthNATIONAL ANIMAL IDENTIFICATION AND TRACING AMENDMENT BILL (NO 2)First ReadingHon DAMIEN O'CONNOR (Minister for Biosecurity): I move That the National Animal Identification and Tracing Amendment Bill (No 2) be now read a first time. I nominate the Primary Production Committee to consider the bill. At the appropriate time I intend to move that the bill will be reported to the House by 4 November 2019 and I will outline my reasons for that time frame. I consider that this period provides an appropriate balance between ensuring the committee and the public have sufficient opportunity to review the legislation package and implementing the changes as soon as possible.Today I present the National Animal Identification and Tracing—we'll call it NAIT—Amendment Bill (No 2) and a regulatory change package to the House. I say package" because the associated regulations are included with the amendment bill. I'm being absolutely transparent about the totality of the changes being made to the scheme's framework. This way the select committee will be able to examine the proposed regulations as well as the statute changes and the regulation amendments will be made at the same time as the bill is enacted.This bill package marks an important milestone in dealing with the problems identified with the NAIT scheme. NAIT information underpins New Zealand's ability to trace animals and respond to disease incursions. The changes address the recommendations made by the two-year Operational Solutions for Primary Industries New Zealand (OSPRI) - led NAIT review and the issues identified during the biosecurity response to Mycoplasma bovis. The package demonstrates that the Government's commitment to ensuring the legislative framework for NAIT is fit for the future. It shows our dedication to continuous improvement of a system that underpins our biosecurity responses.The process to make good legislation takes some time but this Government has moved as soon as possible to get the needed changes in place. I acknowledge the support from other members in the House to ensure that these amendments can be made speedily—and I'm hoping so from the other side of the House—in the interests of all farmers and New Zealand as a whole. The House is well aware of the impact that the Mycoplasma bovis cattle disease has had and is still having on the farming sector on the wider industry and of course on the economy generally as well as the commitment from taxpayers to a large bill.The Government and our bovis partners DairyNZ and Beef and Lamb will spend an estimated $890 million to eradicate Mycoplasma bovis. This is a major commitment. To back it up we need to make the legislative changes to support the eradication programme. The NAIT scheme needs to be improved to incentivise good behaviour by farmers and to strengthen traceability. Mycoplasma bovis was the first actual test of the scheme. It showed where those improvements should and need to be made.The package makes amendments to improve the scheme on several fronts. All the amendments work together to improve the tracing of animals. Some of the amendments to improve traceability are required to allow the operational changes NAIT Ltd needs to make—for example making sure each NAIT number relates to a specified land parcel. There are also changes to address the tracing issues found during the Mycoplasma bovis response. The legislation makes it clear that when farmers shift premises they can no longer take old NAIT tags with them to use at another location. Note that there will be a transition period to allow farmers to use up their existing stock of tags.Everyone should now know what is expected in terms of using the NAIT scheme and stronger action is needed to incentivise compliance. We want to make the tools available so that if warnings don't get heeded there are real consequences for wilful failures to do the right thing. Several amendments will help drive better compliance with the scheme such as increasing the penalty limits and infringement fees for offences to the same level as those for offences under the Biosecurity Act and the Animal Products Act.The $150 fine for offences relating to failure to tag animals is too low to be a deterrent. This fee will go up to $400. The infringement fee for offences related to failures to register is changing from $300 to $800. Also when a very serious offender is prosecuted in court the sentencing judge will now be able to choose the most appropriate fine from a wider range. The individual $10000 maximum penalty increases to $100000 and the corporate fine goes from $20000 to a maximum of $200000. Higher penalties that line up with those given for similar offending across the biosecurity system will reinforce the importance of people complying with their NAIT requirements.Tracing relies on having all animals tagged and registered. Unfortunately there has been some misuse of the original "impracticable to tag" exemption. This exemption was meant to be a short-term thing used to manage some unruly and large animals that were in the system at the inception of the scheme seven years ago. However it is being used by some people who consider tagging the animals as simply inconvenient. That behaviour has to change. The amendments will tighten up this area so that the only reason for an animal not to be retagged will be the safety of the person who is in charge of it—and that is a reality for some large animals who may have lost their tags.Since 2012 animals are meant to have been tagged at birth when they are small. By now farmers should have the equipment and processes in place to deal with the very few large or unruly animals that lose their tags. Therefore in five years' time from when this legislation is passed the ability to get this exemption will expire but we will be able to have exemptions of course for safety. The long lead-in period gives people plenty of time to update their methods for managing and tagging all their stock.The amendments will strengthen the monitoring of the NAIT organisation by filling identified gaps in the performance and reporting provisions. The changes will make sure a Minister can intervene in NAIT operations in a graduated manner if necessary. We need to make sure there is no repeat of the problems in the existing NAIT organisation that came to light last year. NAIT data needs to be useful to as many people as possible. The more useful it is the more incentive there is for farmers to comply with their recording obligations. It will be a win-win situation for the wider sector.The amendments to it ensure that the Ministry for Primary Industries (MPI)—who is the largest user of data—can get streamlined access to the information. The director-general of primary industries will be able to grant MPI staff access to the data in the NAIT system for the purposes of the Act. In urgent situations such as when wandering stock are creating a road hazard MPI will also be able to facilitate the use of NAIT data by other agencies such as local councils or the police or fire services. This change will help these services swiftly identify who is responsible for the individual animals. The data can only be used for the purposes set out in the NAIT Act. There are very clear provisions on this. Unlike most similar laws a person who misuses NAIT data can be prosecuted.The NAIT bill also allows extra conditions to be set on the use of particular NAIT data that someone has applied for. These are very strong practical safeguards. I want to ensure that NAIT information is protected for the future and that the sector will always have access to it no matter who the NAIT organisation is. The draft law therefore confirms that NAIT data becomes the property of the Crown to be held on behalf of the people supplying it other farmers wider industry and the public interest. A NAIT organisation will also have to ensure continuity of access to the information system if in the future another agency is designated as a NAIT organisation.Taken together the amendments will improve the system as a whole. The package also takes the opportunity to make some technical amendments and enhancements to ensure the law is as clear as possible and to correct minor drafting errors. This legislation package is a further step in this Government's ongoing programme to improve our animal tracing scheme. We need a system that supports and makes it easier for people to comply and encourages them to play their part so that New Zealand's biosecurity continues to be world class. It gives me great pleasure today to speak on this very important piece of legislation. I trust the House will support it.Before I finish I'd like to acknowledge the speaker who's about to rise the Hon Nathan Guy. He has served this country well as the previous Minister of Agriculture. While we've disagreed on a number of issues and perhaps the implementation of NAIT I hope that he shares my view that we've got to pass this as quickly as possible. But I do acknowledge his service to New Zealand and wish him well for the future. Now I commend this bill package to the House.ASSISTANT SPEAKER (Hon Ruth Dyson): Just before we take the Hon Nathan Guy could the Minister just confirm that the bill he's moved is called the National Animal Identification and Tracing Amendment Bill (No 2)?Hon Damien O'Connor: Correct—No 2. Thank you Madam Speaker.ASSISTANT SPEAKER (Hon Ruth Dyson): Excellent. Thank you."