O'Connor GregGREG O'CONNOR (Labour—Ōhāriu): This is one of those situations where I haven't sat on the select committee. I have been aware of this bill and read bits about it but as people in the House will know unless you're actually directly involved the nuances of the bill often escape you. Having been requested by my whip to present on this bill I've had the opportunity for the last 10 minutes to read through it and I'm incredibly impressed by this bill. What have we actually got here? We've got a bill that says that if your business gets in trouble you will have compulsory mediation—well not compulsory" but highly advised mediation. You've got a system that will ensure that before the creditors move in before you are kicked off your farm before—and we can go back to any stage in history which has been littered with opportunities or instances where people have been basically kicked off their land. Well at any stage in history I'm sure any farmer or anyone involved in agriculture would have loved to have a piece of legislation like this to be able to refer to. I'm from a family that arrived in New Zealand in the 1840s from Ireland as a result of the Irish famine when the land became exhausted and when farmers didn't have access to any such thing. They basically starved or they left and that was probably a very typical example of what happens in the dog-eat-dog of farming—the dog-eat-dog of farming which exists generally around the world. The dog-eat-dog of farming has actually existed largely in New Zealand. One only has to drive around New Zealand and you'll still see the skeletons of old dairy factories and you'll still see the skeletons of old dairy farms. The farm that I grew up on previously is now three farms and typically I'm sure that those involved in farming here and on the opposite benches will know that the piece of land that they now occupy generally was probably about at least three or four farms before it became the economic unit it is today. So that is an evolving process. History doesn't stop. What we'll actually see is that the lands that are farmed now that may be an economic unit of maybe 2000 stock units may in the future become an uneconomic unit unless there is policy around which farming can actually survive at that level. It is inevitable that in a business like farming there are good businessmen and businesswomen and there are bad businessmen and businesswomen there are good farmers and bad farmers and there are unfortunate farmers and there are unlucky farmers. For whatever reason anyone who is in business or anyone who is out there contesting the dollar may find themselves in trouble. So coming back to this bill I see that ultimately it settles around the role of a mediator. When the raw forces of capitalism—and let's face it across the aisle are the so-called champions of the raw forces of capitalism—are applied to agriculture as they are applied to any business in fact there will be a protection given by this bill. Having just read the bill—and a member of my own family from that family that arrived in the 1840s from Ireland is the current Minister of Agriculture—I'm actually very proud I have to say that around the family dinner table at Christmas it will be spoken of as a very good piece of legislation. Even those relations of ours that are still on farms if they should happen to bring up—not that they ever will—that there are any problems on the farm it will be something to be able to remind them of which is that this year this fine Government that I am proud to be part of has actually brought in a piece of protection that no one else in New Zealand really has got. So the businessmen and businesswomen who make up our farmers now should back—they are getting good dairy prices better than for a long time.Basically the thing is that the members opposite when in Government were very fortunate post-2008 and post-2012 when dairy prices were through the roof. We've survived that. So there wasn't the need for farm remediation. There wasn't the need for the bankers. In fact at that very time what were the bankers doing? The very reason this bill is required—the bankers were out there. And what is the definition of "banker"? A banker will lend you his or her umbrella when it's fine but will come and take that umbrella back as soon as it's raining. Well it is still fine at the moment in farming because we do have high dairy prices. We do have high land prices. We do have high beef prices. DEPUTY SPEAKER: Come back to the bill. You started well; you've just deviated slightly. GREG O'CONNOR: But this is why it is so wise Madam Speaker that we are bringing this bill in right now because it is in anticipation that the very famine that has beset every one of us wherever we came from around the world whether we came in 1200—DEPUTY SPEAKER: I do think it is a long stretch to compare this bill to the Irish Famine but could we come to debate about the bill?GREG O'CONNOR: Well I like to provide context Madam Speaker but I will come back. Let's just have a look at some of the provisions.DEPUTY SPEAKER: That would be good.GREG O'CONNOR: What are the benefits of this mediation? Mediation is a key word in this bill—a key word: this mediation that will be allowed for those businessmen and women who occupy farmland today that will generally be denied to most other businessmen and women in New Zealand. It provides a safe environment for farmers to work constructively with creditors through debt problems. That really is the key to the bill. While mediation may not save the farm business it can help facilitate a dignified exit for farmers if necessary or alternatively it can allow the farmers to explore options for turning it around. History has shown that the earlier mediation comes and the earlier someone who is in any business—in this case the agriculture business—does seek help and advice then the chances of actually turning the financial problem around is increased considerably. But let's go back to some of the other provisions of the bill. Who's going to pay for this scheme? Actually again as I read through this it is unusual to read through a cost and set up of any scheme—one generally expects to see lots of zeros. In fact the estimated cost to set up the scheme is about $350000. The estimated annual cost for administering the scheme is about $250000 to $300000 met from the Minister for Primary Industries' existing baseline. The cost of each mediation is expected to cost about $6000 split between the creditor of course and the farmer—of course limited—and the agricultural business person who is in the business of agriculture their contribution will be limited to $2000. Again I hail this piece of legislation. It is recognition of the financial vulnerability and stress on the farmer who will be going through this mediation. So I can't speak highly enough of this piece of legislation and I'm just ashamed that I wasn't on the select committee and around the family I should have been briefed on this perhaps by the family member myself. Also important in this legislation—because the other thing we all know is that what we so often need when anyone gets into financial issues is time. Once this mediation is initiated farmers and creditors will have up to 60 days to complete the mediation process. I daren't mention Ireland again for fear of upsetting the Speaker but any business anywhere that's got itself in trouble certainly in the agriculture business I'm sure would be only too happy to have had that 60 days—to know that they had 60 days of a cushion to ensure that they did have time for the heat to go out of the business the heat to go out of the problem and perhaps to get that money together. In the bill here is this 60 working days—that's 60 working days I might add; not just 60 days to complete the mediation process. So what is the mediation agreement? Again going back to the bill the mediation agreement is produced at the end of the mediation process and it sets out those agreed actions for future arrangement of the debt. Again any business person would actually be ecstatic to have that sort of fall-back position. We come again back to the bill. What if the farmers did not want to take part in the mediation? Well the creditors can then apply for an enforcement certificate which would allow for the creditor to proceed. So I doubt very much that the wise men and women who make up our farming industry will decline such an offer. I also ask you what if the lenders don't want to take part in the mediation? Again a threat particularly when we look at the financial sector—perhaps they're under pressure to call in the debts. The creditors will be encouraged to accept this mediation. I commend this bill."