Carter David: Farmers' Mutual Group Bill — Second Reading Procedure Third Reading 
Carter David: Farmers' Mutual Group Bill — Second Reading Procedure Third Reading 
[Volume:641;Page:11149] 
Hon DAVID CARTER (National) 
: 
 I rise to support the Farmers’ Mutual Group Bill in its second reading. At the outset to provide clarity to the House I want to repeat something I said to the Primary Production Committee at the time we started the deliberations: I am a member of the Farmers’ Mutual Group and have my farms insured with this organisation. 
I first became really interested in this organisation when I attended a dinner in 2005 in Mr Maharey’s city of Palmerston North to celebrate 100 years of the Farmers’ Mutual Group. I commend to any members of the House if they are short of bedtime reading to grab a copy of the book  
Pride Passion and Parochialism—A History of FMG.  
I have found it a fascinating read. Having finished with  
The Hollow Men 
 last Christmas I am continuing with this book now. 
I find the history of the formation of this quite remarkable organisation really interesting. It is about farmers over 100 years ago who were feeling they were being ripped off by British insurance companies and who were finding that their fire insurance rates were becoming astronomical. They themselves set about trying to solve the problem by forming a whole lot of mutuals. 
If any members were to read the history they would note that Parliament receives quite a lot of mention in the book’s early stages because a Mr Kirkbride who was the member for Manukau was in fact someone who had almost dedicated his political career to the passing of the first legislation the Mutual Fire Insurance Bill which came through the House around 1903. He said at the time of the second reading on 22 July 1903: “The Bill is for the purpose of enabling settlers not actually living in a town to form mutual fire-insurance associations …”. What he was saying there is that this legislation was very much targeted at real farmers who were establishing themselves in New Zealand at that time. He went on to say that the British-owned stock and station companies were relentlessly marketing fire insurance premiums and that there was a need for sensible alternatives. 
Subsequent to the passing of that legislation we saw provincial mutuals or regional mutuals establishing themselves all around New Zealand and continuing to flourish. Then in 1978—relatively recently—they all came under one umbrella and the head office was established for the Farmers’ Mutual Insurance Association in Palmerston North. So the book is a real true and interesting history. What we obtain when we read that book is knowledge of the determination and tenacity of the then farming community who with their farming leaders were intent on making sure they got reputable insurance that was affordable to the industry. 
When the matter came before the Primary Production Committee what struck me was that that determination was something that was still required because there were indeed some obstacles that had to be overcome through the select committee process. I am referring of course to none other than the Ministry of Economic Development whose officials came before the select committee and basically said that because the ministry was in the process of doing a review there was no alternative but to hold this legislation until the review was completed and then any subsequent legislation might be passed by this Parliament. 
Simon Power 
: You can rely on the bureaucrats! 
Hon DAVID CARTER 
: Well it was typical of the bureaucracy. It is no wonder it has got so large; I guess bureaucrats have to find something to do. 
The good news is that the select committee was not persuaded by that argument. A huge amount of work had been done by the Farmers’ Mutual Group starting in 2004 to get the legislation through its processes as a private bill. The committee members in total were not prepared to buy an argument provided by bureaucracy that they should be held up from achieving what they wanted to achieve just because the Government had embarked on another review. 
In conclusion I take the opportunity to thank all members of the select committee for their work. The bill was one of the more fascinating and interesting ones we have had. I certainly take this opportunity to thank the officers of the Farmers’ Mutual Group who came along and—I think I can say—politely expressed their frustration the system and with bureaucracy but who helped us to get through some sensible amendments. I certainly hope that the legislation we are in the process of passing today stands the Farmers’ Mutual Group in good stead for the next 100 years. I also make special mention of Parliamentary Counsel officer Catherine Yates who was invaluable through the process. 
Finally I say that there was some haste in the way the bill was conducted through the select committee and more important some haste in the way it is now being conducted through Parliament today. I think that needs an explanation. Mr Maharey was quite correct to point out that consultation had occurred with the Farmers’ Mutual Group and its members before the bill came to the select committee. There were no submissions in opposition apart from perhaps the advice we got from the Ministry of Economic Development. 
But the reason we have been keen for Parliament to progress the bill through all its stages is in fact not just one of importance but also of sentiment—that is that Mr Peter Jensen who has been a member of the board of the Farmers’ Mutual Group for the last 16 years and who has been its chairman for the last 5 years has given notice that he intends to retire from the organisation at its annual general meeting which is scheduled for 25 August this year. It was suggested to us that it would be very helpful and very much a tribute to the work of Mr Peter Jensen if Parliament could cooperate—as indeed it is doing so today—in making sure that this legislation goes through all stages in the House and is ready for the Royal assent so that that can be announced and completed to mark the retirement of Mr Jensen who has done a superb job for this organisation.