Carter David: State-Owned Enterprises (AgriQuality Limited and Asure New Zealand Limited) Bill — In Committee 
Carter David: State-Owned Enterprises (AgriQuality Limited and Asure New Zealand Limited) Bill — In Committee 
[Volume:640;Page:10069] 
Hon DAVID CARTER (National) 
: 
 In talking to Part 2 I want to conclude my contribution with one point that has not been raised in the debate that I have heard so far and that is the very strange way this merger has actually been proposed. This legislation allows the merger to proceed if the Government decides it wants the merger to proceed. At first sight that seems a very very strange way of doing things unless one realises the connection between the Labour Party and the New Zealand Public Service Association (PSA). In the normal course of events most Governments would do a cost-benefit analysis to work out whether there would be any benefit in putting two State-owned enterprises together and then if there were that Government would usher the legislation into the House to enable that to happen. 
But Mr Mallard who is not known for his economic prowess has done it a completely different way. He has put the legislation before the House which he will make sure passes the Committee stage today; then he says we will initiate a cost-benefit analysis and if by chance the cost-benefit analysis comes up suggesting that a merger will occur the Government will take it through the Cabinet process and decide that a merger will take place. Yes I say to Mr Finlayson this is exactly what Mr Mallard is doing. 
In actual fact I have heard quite recently that despite Mr Mallard saying when this legislation was first put before the House that members should not worry because the Government would do the work and make sure that the cost-benefit analysis stacks up the decision has already been made. Those members of the two boards who will not be involved have already been told that their jobs have finished. It has been agreed that there will be an interim board involving some members from each of the current boards of Asure New Zealand and AgriQuality. In other words despite the promise that the Government will look at it fairly in the light of a cost-benefit analysis Mr Mallard and the Labour Government have already decided that the amalgamation will occur—despite any cost-benefit analysis. I suspect to be fair to Mr Mallard some cost-benefit analysis will be trumped up. In fact I suggest that it will show a saving of around $2.5 million. Even with an industry worth as much as this to New Zealand the Government in order to satisfy the demand of the union is prepared to put this merger through on the trumped-up saving of $2.5 million. 
I want also to talk briefly about my amendment to clause 10 which attempts to save $2 million for all the beef farmers of New Zealand. At the moment the Animal Health Board does a very good job and farmers pay the lion’s share of the costs of operation of the board. Farmers put in $50 million every year for the TB eradication process. This legislation will immediately up that cost by 4 percent next year but the same testing result will be achieved and for the same sort of coverage around New Zealand. The Animal Health Board has estimated that the cost to New Zealand farmers will be another $2 million instantly. I support completely Eric Roy’s amendment which would at least bring Meat and Wool New Zealand into the consultation process. That is a good move and I certainly hope Mr Mallard will stick to his word which he gave Eric Roy in the House earlier today and support the amendment. But frankly his ability to stick to his word as shown in the way he treated Gordon Copeland gives me absolutely no confidence at all that we will be successful with that amendment; not until it is finally voted on tonight. 
The last point I want to make is that the Supplementary Order Paper put forward by Mr Mallard is a real sop. New subpart 3 in new clause 12 states that the Commerce Commission must within 3 years investigate the prices charged for meat inspection services in New Zealand. We might think that sounds all right but look further through the small print. Who pays for that investigation? Well knowing the Labour Party we say it would probably be the farmers of New Zealand and that would be dead right. The cost for this investigation by the Commerce Commission which is normally funded by the Crown will be passed on in this particular case to the farmers of this country—because Mallard hates New Zealand farmers. 
This legislation is outrageous. It will cost the farming industry dearly. It is all about satisfying the long and lengthy demands of the PSA.