Carter David: Dairy Industry Restructuring Amendment Bill — In Committee 
Text is incorporated into the Bound Volume 
Carter David: Dairy Industry Restructuring Amendment Bill — In Committee 
[Sitting date: 17 July 2012. Volume:681;Page:3546. Text is incorporated into the Bound Volume.] 
Hon DAVID CARTER (Minister for Primary Industries) 
: 
 To assist the debate I want to make clear the Government’s position with regard to Supplementary Order Paper 85 in the name of the Hon Damien O’Connor. Can I first make the point with regard to this legislation the Dairy Industry Restructuring Amendment Bill that the Government has been aware for some time of the risk that the redemption risk posed to Fonterra’s ability to maximise growth potential for itself and for its farmers. On that basis the Government has worked closely with Fonterra as it has developed a proposal to take to its shareholders called Trading Among Farmers. I do not accept the allegation just made by Mr O’Connor that I argued that there was never a need for a second vote amongst farmers. That was a decision entirely for Fonterra. Fonterra made the decision to have a second vote amongst its farmers and it was supported by 66.5 percent of the farmers who voted. That is a mandate on which Fonterra has said it is proposing to proceed with Trading Among Farmers. The Government’s job therefore is to enable the legislation to proceed to enable Trading Among Farmers to proceed. 
In the meantime the Labour Party has got itself into a very difficult position because the member who has just spoken Damien O’Connor simply does not understand the legislation. Indeed he is not alone in that; there is a group of very vocal Fonterra shareholders who have failed to grasp exactly what this legislation is doing. 
 Having accepted that the vote has taken place the Government is proceeding with the legislation to enable Fonterra to deliver Trading Among Farmers in November. It is not the Government’s position therefore that we accept what is probably a meaningless Supplementary Order Paper in a position to try to buy Labour’s support on this legislation. If Labour has chosen not to support the dairy farmers of New Zealand who have voted in a very public manner then that is a decision for the Labour Party to make and I accept that it has got every ability. But with regards to supporting a Supplementary Order Paper that then starts to interfere with the constitutional matters of Fonterra the Government will not support it. The Government will not support it. 
It is interesting to note that Fonterra shareholders themselves had a vote on the size of the fund and they voted against it. I understand they are going to run a further vote later this year and that is where this matter should be determined. It should be determined by Fonterra directors and its shareholders with votes at annual general meetings. It should not become part of public policy and passed here in the House in an effort to save the embarrassment of the Labour Party which has misinterpreted where Fonterra’s shareholders would vote. My job here is to facilitate this legislation to give Fonterra and its shareholders the best opportunity to create wealth for themselves and wealth for New Zealand and I wish them the very best of luck in doing so.