Norman Russel William: Tariff (New Zealand-Hong Kong China Closer Economic Partnership Agreement) Amendment Bill — Second Reading In Committee Third Reading 
Norman Russel William: Tariff (New Zealand-Hong Kong China Closer Economic Partnership Agreement) Amendment Bill — Second Reading In Committee Third Reading 
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Dr RUSSEL NORMAN (Co-Leader—Green) 
: 
 I stand to speak on the third reading of the Tariff (New Zealand-Hong Kong China Closer Economic Partnership Agreement) Amendment Bill which implements some parts of the Hong Kong - New Zealand preferential trade agreement. 
I will touch on a couple of issues raised in the last speech on this bill which was from David Shearer. The first is some of the broader problems with these kinds of treaties particularly the investment clauses. Secondly why doing a deal with the Communist Party of China is particularly naive and stupid. 
In terms of the investment clauses in these treaties currently there is an exchange of letters developing the investment parts of this treaty but no doubt it will be very similar to the New Zealand - China free-trade agreement and will be modelled along the same lines. Effectively the investment clauses in these treaties lock in existing overseas investment rules so we cannot tighten the overseas investment rules beyond what they currently are without breaching the terms of the investment clauses within these treaties. So if we as a democratically elected Parliament were to decide that we want stronger rules around overseas investment than we currently have and we changed those rules we would be breaching the terms of the treaty we have signed with China and the terms of the treaty through the exchange of letters that is very likely to be signed with Hong Kong. In spite of all the rhetoric from Labour and National that they are concerned about the sell-off of farms tonight they are supporting a bill that locks in the current investment rules and means that we cannot tighten them. If we look at article 138 or article 141 of the New Zealand - China free-trade agreement we will see that that is exactly what that agreement says. We cannot tighten those rules without breaching the terms of the agreement. 
Secondly I would like to draw attention to the clauses on expropriation. In the New Zealand - China free-trade deal and there are parallels with the Hong Kong deal there are clauses about expropriation particularly indirect expropriation. That means that if we tighten the rules on environmental regulation with the result that a foreign investor in New Zealand loses money then New Zealand is required to compensate that person for the loss of the value of his or her business. These cases go to an international tribunal and the case is decided on by a three-person panel. That panel can decide that in fact the New Zealand Government has indirectly expropriated from a particular business by changing for example environmental rules or by tightening environmental rules. 
These treaties are set up to tie the hands of democratically elected Governments to make it harder for those Governments to regulate capital and business activities. I have no idea why Labour and National wish to restrict the ability of democratically elected Governments to regulate to protect the environment or to protect labour standards but there we have it. Why we would want to sign up to a treaty that means we cannot tighten overseas investment rules to stop the sell-off of farms to overseas owners is beyond me but that is what Labour and National want to do. Well if people vote for Labour or National then that is exactly what they will get. 
The other issues are labour and the environment. Much has been made of the side agreements on labour and environmental issues. We have seen side agreements with lots of these free-trade deals and they mean nothing. These side agreements mean absolutely nothing. Let us remember that the Chinese Communist Party is right now locking up trade unionists who are independent of the All-China Federation Trade Unions. There is an organisation called the All-China Federation Trade Unions which is the union controlled by the Chinese Communist Party. If people step outside of that union and become independent unionists they are locked up and put in jail—literally. These side agreements about labour mean absolutely nothing because the Chinese Communist Party has made it very clear that it is extremely hostile towards independent trade unionists. People whom we would consider legitimate like members of the New Zealand Council of Trade Unions would all be in jail if they lived in China. That kind of independent trade union activity is absolutely illegal in China; people cannot do it. So let us stop pretending that somehow there is some kind of independent trade union movement in China. Well there are people trying to have an independent trade union movement but they are the ones who are locked up and put in jail. So side agreements around labour and environmental standards mean very little. 
What really stands behind this kind of negotiation between Labour and National in New Zealand and the Chinese Communist Party is an incredible naivety and maybe a wilful ignorance about the nature of the Chinese Communist Party that Labour and National are negotiating with. Let us remind ourselves of the nature of the Chinese Communist Party that we are negotiating this treaty with. 
The Chinese Communist Party has eradicated all political rivals. There are no political rivals in China; it is a one-party State—try to do something different! It has eliminated the autonomy of the courts. The courts must implement the decisions of the Chinese Communist Party. China does not have an independent judiciary. That is what we are dealing with. It has eliminated the autonomy of the press. Every week the propaganda department of the Chinese Communist Party literally puts out instructions as to what can and cannot be covered in the media in China. The Chinese Communist Party which Labour and National are so intent on negotiating this treaty with has restricted religion. Of course it has locked out the Falun Gong. Civil society is extremely restricted. It has centralised all political power it has extensive networks of security police and dissidents are routinely sent to labour camps. But Labour and National are very happy to negotiate with the Chinese Communist Party— 
Mr DEPUTY SPEAKER 
: I am sorry to interrupt the member but I am having difficulty hearing him. Can I ask that the other discussions that are going on be held at a lower level or out in the lobbies please. I want to hear what the member has to say. 
Dr RUSSEL NORMAN 
: It is very important when negotiating this treaty that we understand the kind of organisation we have been negotiating with. We also need to understand what the Chinese Communist Party wants from New Zealand. What the Chinese Communist Party wants from New Zealand is raw commodities. That is actually what this treaty is about. The treaty is about getting access to raw commodities coming out of New Zealand. What China particularly wants access to is dairy and lumber—timber products—and other kinds of commodities. The whole purpose of negotiating this treaty from the side of the Chinese Communist Party—both the Hong Kong one and the Chinese one which work in parallel—is to get access to New Zealand’s primary commodities. People say that the treaty is about something else but from the Chinese Communist Party’s side that is what it is all about. 
The strategy of the Chinese Communist Party has been incredibly intelligent. China has had extremely low wages it has built up enormous reserves and now with those enormous reserves it is going out and buying up commodity producers and natural resources all around the planet. That is why we see the current interest from Natural Dairy in dairy farms in New Zealand. China is trying to buy up farms in New Zealand so that it can send commodities back to Hong Kong. The treaty that Labour and National are so very keen on negotiating will facilitate the ability of Natural Dairy to buy dairy farms in New Zealand and export the dairy produce back to Hong Kong. Natural Dairy is a company listed on the Hong Kong Stock Exchange and this treaty that Labour and National have signed with the Chinese Communist Party will facilitate the ability of Natural Dairy to buy dairy farms in New Zealand because we will not be able to tighten the overseas investment rules. This treaty puts a ratchet clause on the overseas investment rules. According to this treaty we cannot tighten the overseas investment rules. So Natural Dairy will have increased ability to buy up dairy farms. The treaty also makes sure that the goods coming out of those dairy farms that Natural Dairy buys in New Zealand are exported back to Hong Kong and ultimately China. 
From the point of view of China and Hong Kong—Hong Kong is part of China—they want access to these kinds of commodities. They are in a process of buying up farmland all around the planet—not just in New Zealand but all around the planet—and buying up mineral reserves in order to get access to them. 
People may remember the controversy about Rio Tinto and the fact that Chinalco the big Chinese aluminium company tried to prevent the amalgamation of BHP Billiton and Rio Tinto. That was part of the same strategy. The Chinese Communist Party wants to get access to natural resources all around the planet in order to get them back to China which makes perfect sense. This treaty is part of that strategy. Why would the Chinese Communist Party not sign it? Of course it will sign up if New Zealand is silly enough to sign a treaty that makes it easier for the Chinese to buy farmland in New Zealand and get access to dairy products. Of course it would sign it; it makes sense for the Chinese Communist Party to sign it. The question is whether it makes sense for New Zealand. Of course the answer is that it does not. 
That is why the Green Party will not be voting for this bill. It is a silly treaty and we should not be part of it. It is bad for New Zealand.