10. Question No. 10—Trade and Export GrowthJAMIE STRANGE (Labour) to the Minister for Trade and Export GrowthQuestion No. 10—Trade and Export Growth10. JAMIE STRANGE (Labour) to the Minister for Trade and Export Growth: How much money has been spent on the Saudi sheep farm in the desert also known as the Saudi agri-hub and have any steps been taken to stop more money being spent?Hon DAVID PARKER (Minister for Trade and Export Growth): Around $10 million had been spent on building a sheep farm in the Saudi Arabian desert before we took office including taxpayer money spent flying ewes on Singapore Airlines and a $4 million cash payment to a Saudi business not owed any money. On 31 December this Government terminated the remainder of the contract to ship and install an abattoir in Saudi Arabia. This has saved taxpayers almost $1 million. We don't believe any more taxpayer money should be flushed down the drain on this shabby scheme.Jamie Strange: What have been the benefits of building a sheep farm in the Saudi Arabian desert?Hon DAVID PARKER: Thus far I've seen none. There was never any credible legal threat to New Zealand so building a sheep farm didn't resolve it. We still don't have a trade agreement with the Gulf Cooperation Council. New Zealand's reputation for fair dealing was undermined by the so-called incentive payment of $4 million to a Saudi business not owed any money. The Auditor-General found the payment was provided under the guise of a contract for services." She was undoubtedly correct. This money was wasted. Jamie Strange: Has he seen the report back required by the Auditor-General from the responsible department on the benefits of the sheep farm?Hon DAVID PARKER: I'm advised that officials are still working on it but I would opine that they would probably work for a decade and still not find any benefits to justify the scheme. There were no benefits from the $4 million cash payment to the Al-Khalaf business no reputational benefits from the mass deaths of lambs and there was no benefit for the terms of the deal allowing the media to be blocked from the showcase farm. I agree with the Auditor-General that the lack of transparency around this venture was appalling and I will ensure that a fulsome report is provided. Rt Hon Winston Peters: Is the Minister saying that the claim that there was a legal threat and therefore action had to be taken by the previous Government was simply not true?Hon DAVID PARKER: Yes I am. I am saying that. It's clear that there was no legal threat and that the ban on the export of live sheep for slaughter was always legal. I have seen departmental reports from ministry officials that do record that the Saudis did take offence at expectations that were created by a former Minister for Primary Industries and also at the somewhat arrogant statements that were made by one of his staff members as he talked down to the Saudi officials. Perhaps those on the other side of the House who've been casting aspersions should look to their own house.Hon James Shaw: Has anyone been or will anybody be held accountable for wasting taxpayer money on a sheep farm in the Saudi desert?Hon DAVID PARKER: Well sadly no. The money's been lost; we've got no right to recover it. But I suppose one form of accountability was the election result.Hon James Shaw: Has the Minister seen any reports that corroborate former Minister McCully's assertions about why the deal was needed?Hon DAVID PARKER: No I haven't and I would also make the point that after the Auditor-General's highly critical report that Minister gave but one interview held 20 minutes after the report had been released as he came into question time before the media had even had the chance to read the report and since that time he has not given one interview to the media during the year or so that followed prior to his leaving Parliament.Hon James Shaw: Has the Minister seen any media reports that Murray McCully and Michelle Boag have moved on from the Saudi sheep scandal to establish a blue-green party in Auckland?SPEAKER: Order! Even if he had he wouldn't have any responsibility."