O'Connor DamienHon DAMIEN O'CONNOR (Minister of Agriculture): Look thank you very much Mr Chairman. I'm very happy to answer the Rt Hon David Carter's questions. If I can start with the first one why the rush? On 31 May the legislation that governs Fonterra for South Islanders will effectively become defunct. It won't operate in the way that farmers and all the processors and everyone have expected and have utilised over the last 10 years or so. So there is some urgency and in fact it is the same urgency that was there when from 2015 the trigger point for that legislation was met. It was 2015; it's now 2018. Who was in Government?Hon Tracey Martin: National Party!Hon DAMIEN O'CONNOR: Oh! It was indeed the National Party and the National Minister. Now to be fair to the Minister he then conducted a review. The review was conducted and then a piece of legislation was drafted up and actually there was plenty of time from the drafting of the legislation before the election to pass that. And if the National Government had been determined to pass it and protect the dairy industry—if it was its true friend—it would've done so. But the reason the National Minister and Government didn't want to was they didn't want to have a scrap among their friends. And the bottom line is that within the dairy industry and the farming sector there's still a lot of division about some of the core provisions. In fact the open entry open exit provision was a debate between Fonterra and Federated Farmers. They announced—I'm sure at the encouragement of the Minister—a compromise situation that effectively said Well Feds we do kind of support open entry and open exit." but they didn't really. It was a temporary fix to what is a major component of a piece of legislation. And because of that debate the Minister to be fair to his colleagues didn't want to have his constituency—the dairy industry—up in arms and arguing with the Government in the lead-up to the election. That's why they didn't do anything about this.I understand and the Government understands the need to pass this prior to 31 May. So we had a look at the situation and so in moving into the new year had a decision to make. We could have taken the existing or the proposed piece of legislation put it into the select committee and then had an extensive—because it is an important issue—submission process and run out of time before the deadline. So my decision was to separate out the rollover provisions that protect the dairy industry and leave in place the existing legislation. It is a minor technical amendment actually in truth. All it does is take out a couple of provisions that would trigger provisions that effectively did away with the legislation the Dairy Industry Restructuring Act. It's taken them out and said that things can continue—a minor technical amendment.So the urgency is necessary but the review is an opportunity. And let me get on to the second point—the question. Because the bill is necessary and we can pass that now the opportunity then is to go back and open up for wider discussion and honest discussion with plenty of time to look at the key issues that drive the dairy industry and the requirements around competition and fair access for consumer products and the issues of protecting what is our single biggest and best company bar none. New Zealanders still own this. It's a cooperative and all the points raised in the House by passionate farmers for the most part are right.Can I just go back though because in talking about the review—because it won't be easy; because actually I have to challenge the person who questioned me on these issues. In a similar way to the dilemma the Labour Government faces now back in 1999 when we came into Government in fact the National Party was caught up in an internal debate between those in the caucus and the Government that wanted one company like Fonterra and those that wanted open competition for the dairy industry.Rt Hon David Carter: Oh rubbish!Hon DAMIEN O'CONNOR: Absolutely—absolutely true. And so once again the National Government back in 1999 sat on its hands and did nothing. And so it was up to the incoming Labour Government to pick up the mantle and to proceed and to put in place legislation that gave us Fonterra and I'm proud of being part of a Labour Government that did that. Once again we've come into Government with a similar kind of dilemma and we will not be rushed into processing a piece of legislation that was a compromise piece of legislation by the National Government expecting us to just roll it on through. No. We want the best outcome for the dairy industry.And the issues raised by my coalition colleagues are legitimate issues. Some of the issues raised by the Opposition are legitimate. And so we will—Hon Ruth Dyson: Name one. Name one.Hon DAMIEN O'CONNOR: A few. I'm being very very generous. That is they have said that the dairy industry is important. I agree with that. They have said that Fonterra is a very important part of our economy. I accept that and agree with that as well. But there's a lot of other things actually that somewhat contradict one another. I'm confident that the coalition partners in the Labour-led Government have the best interest of Fonterra and the dairy industry and the dairy farmers at heart—absolutely. And the things that are coming at us internationally—like the ones of artificial milk like the ones of increasing environmental scrutiny of increasing scrutiny around our labour laws and provisions in the industry—are things that our customers are absolutely demanding and be it blockchain or traceability or whatever we will have to meet the highest standards internationally to continue to sell high-value products into those best markets.The review is an opportunity—and I acknowledge that the National Party I think deep down see the wisdom in this—and we should embrace the opportunity and go through in a very careful way with the right people and come up with the right outcome. And it won't be a bunch of Tory lackeys which is what that Government did every time it had a review. It will be people who have an understanding of the future of future needs.Hon Nathan Guy: Who? Who?Hon DAMIEN O'CONNOR: Well we haven't decided. If the member has some people he thinks should be put forward I'd welcome him nominating some. But I'll tell you what: they'll be on the committee because of their wisdom and vision not because of their political alliances.Can I say to the third point around urgency there are—Rt Hon David Carter: That was the first point actually.Hon DAMIEN O'CONNOR: That's right. There have been people making submissions on the dairy industry review. I accept that and I'm guessing that the same people will make submissions to this and there may be some more because the industry has moved forward quite a long way in 12 months in fact—quite a long way. So there are now issues and perspectives that I think have changed since they last made submissions and I welcome their submissions back into this process. They don't want to make submissions two or three times. This urgency legislation is a technical bill to just roll things over and allow those people to put their time and effort into and focus on to a substantive submission that will come in to the substantive review.So I think I've answered all three questions. I may not answer every question quite so substantively because I think therein lies—and respecting the questions asked by the member here the Rt Hon David Carter; because he comes from a good school he's asked smart questions. Can I say that it's fair enough that I've answered him and I hope assured the House and the dairy industry that the coalition Government in proceeding with this legislation and a review has at heart the absolute best long-term interests of Fonterra dairy farmers and the dairy industry and the New Zealand economy that does depend upon it so much."