van de Molen TimTIM VAN DE MOLEN (National—Waikato): Thank you Madam Speaker. Look it's a pleasure to rise here in the final reading of the Dairy Industry Restructuring Amendment Bill (No 3). Now the key aspect that I really want to touch on is the open entry provisions. That has for a number of years been an area of concern and it's great to see that we've got to a position now where I think we've got a more workable solution for the rural sector. Representing Waikato the largest dairying region in the country I've certainly had plenty of views shared around where we need to get to with this legislation why it's needed to change over time and had a number of frustrations expressed around the inability to progress that change to get that difference in place I suppose of where people want to get to. So the key aspect with that had been around the ability for people to come in and out of the co-op significantly adjusting milk volumes as a result of that; effectively derisking their business decision to look at supplying an alternative to Fonterra because they knew there was always the option to come straight back again if that new supply agreement didn't work out for them. So this takes that away gives Fonterra the ability to have a lot more say in who actually supplies milk to their co-op which then enables them to align those decisions with what their direction might be taking particularly in relation to environmental policies; for example some of the remoteness of pick-ups depending on the location of the properties. So some of those aspects are important changes that have been allowed here.But it has not taken out open exit the other half of that consideration—open entry and open exit. So open exit continues to remain in place which is appropriate given the scale of Fonterra still being 80-odd percent of the milk supply. It is important to enable those suppliers to have the flexibility to exit and look at other options if they wish and that's as it should be. But now of course they have to consider that they may not be able to come back if that doesn't work out. So it requires a bit more due diligence a little bit extra risk on those suppliers as they look to shift out of that. Now one concern I have within that though—and I raised this during the committee stage—was around the potential impact it may have on new suppliers as in first-time suppliers young farmers getting into farm ownership if they are unable to supply Fonterra. That would in my view be disappointing in most instances—not every instance of course—and there's some exceptions to where and why that may be the case. But broadly if a farm has previously been a dairy farm then it would be my expectation that a young farmer buying their first farm should be able to have some confidence that they can supply to Fonterra but certainly to supply in general. And as I mentioned the risk with the rule that's being proposed is that often young farmers or first-farm purchasers they're not buying the most pristine farm. It's often in those second- or third-tier locations. So there are some elements of that that may cause Fonterra to consider whether supply is appropriate in relation to the distance to pick up maybe some of their environmental focus around contoured properties soil types—all those aspects that come into play as well. So that would be concerning if young farmers are unable to get in.So I just really want to place on record here that the expectation from this House—whilst it has been difficult to clearly draft the requirements or a definition of what may be a young farmer and how that might fit in it's important to note that our intent is that Fonterra acts in good faith to work with new suppliers first-time suppliers or young farmers first-farm owners whatever classification you wish to give them to support them as best as possible to come in and supply milk to the co-op. So that's really the two aspects that I wanted to touch on. It's good to see this progress being made now. And I would like to thank all members on the select committee particularly our side: Barbara Kuriger who's the chair now; David Bennett who was the chair prior to that of the Primary Production Committee who have done some great work in shepherding this through. We look forward to seeing it implemented and giving Fonterra a little bit more control over their business. Thank you.Bill read a third time.